Stocks flat after inflation report

The local stock market ended flat despite stronger US bourses as the local inflation rate came out higher in September.

The main index eked out a 0.87 point or 0.02 percent gain to close at 5,988.59 as the Services sector posted the biggest advance while the Conglomerates and Property firm’s retreated. Volume was relatively stable at 644 million shares worth P4.82 billion as gainers outpaced losers 105 to 82 with 46 unchanged.

“Philippine shares close slightly higher as the latest inflationary report was a non-event and the weakening in the most recent US job openings data opened some concerns on the global economic stability,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Based on the latest JOLTS, available positions totaled 10.05 million for Aug., a 10 percent month on month drop from the 11.17 million reported in July. Due to this, investors are now entertaining the idea of whether the Fed will slow the pace of interest rate hikes.”

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse posted a little gain after the September inflation rate printed at the lower end of the Bangko Sentral ng Pilipinas’ forecast range. Last month, the Philippines’ inflation rate reached 6.9 percent. Market gains were limited as this figure remains faster than August’s 6.3 percent.”

She added that, “Moreover, positive catalysts that could move the market were still lacking at the moment. The rally of the US markets overnight, somehow, helped boost the sentiment at home. “

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Credit belongs to : www.mb.com.ph

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