Share prices ended mixed on last-minute selling after initially trading in the green.
Investors digested a surprising inflation number in July that at 4.4 percent was higher than the government’s range of 2 to 4 percent.
The peso closed up.
The Philippine Stock Exchange index was down 1.49 points to 6,433.24, a 0.02 percent drop.
The broader All Shares index was up 4.47 points or 0.13 percent to 3,520.94.
Losers edged gainers 97 to 84 with 56 stocks unchanged. Trading turnover reached P5.11 billion.
The peso closed at 57.81 to the dollar, up from 57.90 on Monday.
The currency opened at 57.96 and hit a high of 57.80 and a low of 58.02. Trading turnover reached $1.21 billion.
An unwinding of yen carry trades, lukewarm tech earnings, and fears that the US could be sliding into recession convulsed equity markets on Monday, prompting investors to dump their risky assets and move into safer bonds, Reuters reported.
“The size of sell-offs seen thus far is too much and fears of a recession in the US economy have eased,” Ryota Abe, an economist at SMBC said.
“Market sentiment will improve with some higher caution on the global economy and the geopolitical risks than before,” Abe said.
He added that upcoming US economic data may suggest the slowdown is continuing which “may bring a view that the economy will someday be going to enter recession.”
Currencies in the region were on the back foot as the greenback edged higher, recovering from a near seven-month low touched on Monday.
Meanwhile, Bangko Sentral ng Pilipinas Governor Eli Remolona said an interest rate cut at their meeting next week was “little less likely” after data showed annual inflation accelerated at a faster-than-expected pace last month.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said last-minute selling dragged the market down.
“The market was initially trading in the green due to bargain hunting after Monday’s steep decline. However, a surge of last-minute profit-taking pushed the market into negative territory,” Plopenio said.
“Negative cues from Wall Street overnight clouded investors while the BSP governor’s statement that it sees room to keep interest rates elevated amid ‘evolving inflation condition’ weighed on the sentiment.
Most actively traded International Container Terminal Services Inc. was steady at P348. Universal Robina Corp. was downP 6.90 to P98.10. BDO Unibank Inc. was up P1 to P140. Ayala Land Inc. was up P0.40 to P28.55. Metropolitan Bank and Trust Co. was down P0.80 to P65. Ayaa Corp. was up P7.50 to P588.50. SM Investments Corp. was down P4 to P880. SM Prime Holdings Inc. was down P0.05 to P27.85. Bank of the Philippines Islands was down P0.80 to P117.40. Wilcon Depot Inc. was down P0.20 to P16.50.
