Stocks fall back as rising oil prices fan inflation worries

Iris Gonzales – The Philippine Star

October 13, 2021 | 12:00am


MANILA, Philippines — Investors quickly took profits from the market’s strong gains, with the main index taking a breather yesterday to join other Asian bourses growing worried over rising energy costs.

The benchmark Philippine Stock Exchange index or PSEi ended at 7,107.82, down 16.19 points or 0.23 percent, while the broader All Shares index slipped 3.83 points or 0.09 percent to close at 4,420.07.

Trading volume remained strong, with net value turnover registering P9.74 billion, above the year-to-date average of P7.24 billion as foreign funds returned to the market with a net inflow of P2.77 million.

Market breadth also remained positive, with 100 advancers to 87 decliners, while 65 issues were unchanged.

Japhet Tantiangco of Philstocks Financial said the market succumbed to selling pressures as investors took profits out of the market’s strong rally on Monday.

“Inflation worries amid the elevated global oil prices contributed to the decline,” he said.

Shares likewise retreated in Asia as surging prices of oil, coal, and other energy added to concerns over inflation.

Costs of oil, coal, and natural gas have been climbing, adding to price pressures that might lead the US Federal Reserve and other central banks to pull back more quickly on their support for markets.

Energy demand has bounced back faster than output as economies recover from the pandemic, driving prices higher. Other factors, including a shortage of truck drivers, shipping disruptions, flooding of coal mines in China, and drought that has dented hydropower generation are also pushing prices higher.

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