Index drops anew on sluggish trades

The stock market has been unable to recover since it opened this week, with the benchmark Philippine Stock Exchange index shedding 78.14 points, or 1.02 percent, to close at 7,518.01.

Traders said the index would have a difficult time gaining momentum just yet given the runaway inflation in August as investors are waiting to see inflation go back to more manageable levels.

Some economists said inflation may have already peaked in August, but noted that monetary authorities still need to raise key policy rates.

The broader All Shares index likewise struggled to stay afloat and failed — closing at 4,597.28, down 43.43 points or 0.93 percent.

Pessimism and gloom reflected as well across all sectors, with the mining and oil and holding firms gauges as among the biggest decliners.

Total value turnover, meanwhile, was thin reflecting market investors risk aversion. Total value turnover reached only P5.403 billion and market breadth was negative, 150 to 58 while 42 issues were unchanged.

In terms of specific issues, Ayala Corp. dropped by 2.02 percent. It reported yesterday that its board of directors, at its regular meeting held yesterday, ratified and approved the resolution of the Executive Committee authorizing the issuance of 8.8 million common shares of stock at a price of P916 per share to a foreign institutional investor.

Luis Limlingan of Regina Capital said renewed fears of a China-US trade tension continued to weigh on investors. He also said there were not many local catalysts to encourage investors to go back to the market.