RP stocks plunge 1.5% as inflation woes persist

MANILA, Philippines- Local share prices fell significantly on Tuesday as investors stayed bearish of market prospects due to expectations of higher inflation in the succeeding months. The Philippine Stock Exchange composite index shed 43.09 points or 1.52 percent at 2,782.80, while the all shares index fell 20.91 points or 1.20 percent to 1,725.73. "Investors continue to factor rising prices, shunning the stock market as they brace for higher interest rates. The market sees that there's no light at the end of the tunnel," Banco de Oro chief market strategist Jonathan Ravelas said. "There has been a shift in sentiment. It's pretty obvious now that there's no such thing as 'decoupling' and that we're still really tied to the United States," he added. The Dow Jones industrial average fell more than 130 points overnight after the world's largest economy exhibited further weakness. In local trade, losers outpaced gainers 56 to 31 while 60 stocks were unchanged. Volume traded reached 2.56 billion valued at P1.97 billion. The decline was led by the bourse's heaviest stock, Philippine Long Distance Telephone Co., which lost P35 or 1.34 percent at P2,570. Top rival Globe Telecom fell P40 or 3.09 percent to P1,255. Both stocks lost heavily on Tuesday as government announced that it is serious about plans to make short messaging services, a major earner for telecom firms, free for consumers. Ayala Corp., the country’s largest conglomerate, plunged P17.50 or 4.96 percent to P335. Property unit Ayala Land dropped P0.50 or 4.65 percent to P10.25. Philex Mining bucked the trend and, gaining P0.10 or 1.38 percent at P7.30. - GMANews.TV