Local stocks ended the week in the red amid massive sell-off as investors worry over escalating global commodity prices despite the softening local inflation.
The Philippine Stock Exchange index lost 125.92 points, or 1.91 percent, to close at 6,450.84, while the broader all-shares index went down by 51.88 percent to settle at 3,447.61.
China Bank Capital managing director Juan Paolo Colet said even as the July inflation rate eased to 16-month low at 4.7 percent from 5.4 percent in June, investors were worried that upward pressures were building up especially for socially-sensitive commodities like rice and oil.
Philstocks Financial Inc. research analyst Claire Alviar said there were also concerns over increased US bond yields after a credit downgrade.
“The selling pressure was strong this time as the net market value turnover was recorded at P6.52 billion, higher than this year’s average of P5.11 billion,” Alviar said.