Stocks down on late selling

The local stock market lost early gains and ended lower after it struggled but failed to stay at the 6,600 level.

The main index dropped 54.32 points or 0.91 percent to close at 5,934.27 aa the Industrial sector led the retreat with only the Services counter managing to advance. Volume dipped to 387 million shares worth P4.2 billion as losers beat gainers 103 to 84 with 41 unchanged.

“Philippine shares were sold down at closing as investors kept tabs on eco data to see if inflation is cooling off or if the Federal Reserve’s rate hikes are pushing the U.S. closer to a recession,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Back home, Philippine inflation accelerated to 6.9 percent year-on-year in Sept.–the highest in 4-years, padding up bets that the BSP will impose more rate hikes.”

Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse pulled back after three straight days of gains. Negative cues from Wall Street and the higher unemployment rate in August weighed on sentiment.”

She noted that, “In August, the unemployment rate was at 5.30 percent, higher than July’s 5.2 percent. 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,” Alviar said.