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LOCAL share prices closed lower on Wednesday due to
renewed fears of inflation, fueled by record-high prices of oil,
dealers said.
But the downturn was muted, with
thin volumes suggesting that investors were not yet in panic mode
and many were just sitting on the sidelines.
The composite index fell 23.70
points to 2,872.45 points off the day’s low of 2,859.38.
The all-share index was down
12.17 points or 0.7 percent at 1,770.37.
There were 64 decliners and 27
advancers, while 64 were unchanged.
Turnover shrank to P1.7 billion
from Tuesday’s P2.7 billion.
The peso closed at 43.240 to the
dollar.
“The market is just taking a
breather after its recent rally from oversold levels. The problem
about inflation is turning uglier but there hasn’t been panic
selling,” said Gomer Tan of Regina Capital Development Corp.
“Skyrocketing oil prices
renewed inflationary concerns. The fundamentals point to even higher
oil prices, and making matters worse is the speculative element as
funds are now flowing into commodities,” said Jose Vistan of AB
Capital Securities.
A weakening peso was also a drag
on investor sentiment, said Francisco Liboro of PCCI Securities, as
importers led by oil companies scramble for dollars to pay for still
rising crude prices.
“Investors are waiting for the
bubble to burst in oil prices. Prices will go up further before
rupturing—when markets realize there is enough supply and
speculators driving up prices will have nowhere to go but to take
profits,” said Liboro.
“But for now, any new record
price will trigger selling of stocks.”
Philippine Long Distance
Telephone Co, the country’s biggest company by market value, fell
0.9 percent to P2,655, tracking overnight losses in its American
Depositary Receipts.
But Philex Mining Co., the
country’s biggest producer of gold and copper, bucked the trend as
commodities rallied. Philex rose 2.8 percent to P7.40.
Food and drinks giant San Miguel
Corp’s A-shares, which only Filipinos can trade, lost 1.1 percent
to P43.50. Its B-shares, open to foreigners, slipped 2.2 percent to
P45.
 --AFP
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