Stocks dip ahead of inflation report

Share prices retreated on Monday as investors took profits ahead of tomorrow’s announcement of August inflation data.

The benchmark Philippine Stock Exchange index declined 0.30 percent or 23.49 points to close at 7,832.22 while the broader All Shares dipped 0.003 percent or 0.16 points to finish at 4,772.17.

Papa Securities Corp. trader Gabriel Jose Perez said market players were taking positions ahead of the August inflation result, expected to be a new nine-year high after July’s 5.7 percent.

The Finance department on Wednesday said consumer price growth likely accelerated to 5.9 percent. Last Friday, the Bangko Sentral ng Pilipinas (BSP) also said inflation could have settled “at around 5.9 percent” last month “with a range of 5.5-6.2 percent” due to higher food, fuel and power rates.

The latest figures will be considered during the next Monetary Board policy meeting on September 27.

“We still might see some light trading for tomorrow (Tuesday) with investors waiting on the sidelines for August’s inflation,” Perez said.

Regina Capital Development Corp. head of sales Luis Limlingan, for his part, pointed to month-end windowdressing and the lack of positive catalysts as having weighed on the market.

Sectoral results were mixed with the financials, industrial, and property indices down by 0.45 percent, 0.44 percent, and 0.89 percent, respectively.

Volume turnover was thin with only 736 million issues valued at P5.59 billion traded.
Losers led winners, 101 to 85, while 54 issues were unchanged.

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