EconomyForex

PHL shares drop on profit taking, oil output cut

2 Mins read
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PHILIPPINE STOCKS declined on Thursday after a three-day climb on profit taking and after the world’s major oil-producing countries agreed to cut output, which may affect inflation.

The Philippine Stock Exchange index (PSEi) went down by 54.32 points or 0.9% to close at 5,934.27 on Thursday, while the broader all shares lost 20.19 points or 0.62% to end at 3,199.79.

“The PSEi ended in the red … on profit taking after the index failed to break 6,000 level [on Wednesday] and as OPEC (Organization of the Petroleum Exporting Countries) announced a supply cut of 2 million barrels per day, the largest since the pandemic started,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message.

Philstocks Financial, Inc. Research Analyst Claire T. Alviar in a Viber message said the higher unemployment rate in August also weighed on sentiment.

“In August, the unemployment rate was at 5.3%, higher than July’s 5.2%, on the upside, the labor force participation rate improved. Meanwhile, the decision of OPEC+ to cut oil production brought negative sentiment to the market as this may lead to higher domestic oil prices, which could upwardly pressure the inflation rate,” Ms. Alviar said.

Most investors also remained cautious ahead of the release of US inflation data next week, Mercantile Securities Corp. Head Trader Jeff Radley C. See said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said shares were sold down as investors anticipate the release of US inflation data, which would provide clues on the US Federal Reserve’s next policy move.

September US consumer price index (CPI) data will be released on Oct. 13.

In August, the consumer price index gained 0.1% last month after being unchanged in July.

In the 12 months through August, the CPI increased 8.3%, easing from July’s 8.5% rise. The annual CPI peaked at 9.1% in June, which was the biggest gain since November 1981.

The majority of sectoral indices ended lower on Thursday except for services, which rose by 11.32 points or 0.73% to 1,553.96.

Meanwhile, industrials lost 188.29 points or 2.11% to end at 8,729.11; holdings firms declined by 92.94 points or 1.6% to 5,692.28; financials dropped by 5.41 points or 0.35% to 1,505.48; property went down by 7.40 points or 0.29% to 2,545.11; and mining and oil slipped by 9.96 points or 0.09% to 10,768.11.

Value turnover declined to P4.20 billion on Thursday with 387.30 million shares changing hands from the P4.82 billion with 644.59 million issues traded on Wednesday.

Decliners outnumbered advancers, 103 versus 84, while 41 names closed unchanged.

Still, net foreign buying rose to P346.01 million on Thursday from P188.31 million on Wednesday.

AP Securities’ Mr. Temporal placed the PSEi’s support at 5,700 and resistance at 6,050, while Mercantile Securities’ Mr. See put resistance at 6,000-6,200 level and support at 5,700-5,880. — AEOJ

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