RP stocks slip as oil prices reach record highs

Philippine stocks slipped on Wednesday as oil prices closed above $100 for the first time, reviving inflation concerns and increasing fears that the US economy is headed for a recession. The Philippine Stock Exchange composite index lost 9.62 points or 0.30 percent at 3,181.05 while the broader all shares index shed 4.42 points or 0.23 percent at 1,994.79. The drop in local stock prices comes after Wall Street fell 10.99 points or 0.09 percent after being up more than 100 points Tuesday night after oil prices closed at a record high $100.1 per barrel overnight. The price has since eased to above $99 a barrel in Asian trading. The renewed spike in oil prices increases concerns over a weakening US economy, which may be pulled down even more by high inflation. “Players are paying attention to external developments like the US economy, not so much to the political things happening locally," said Jonathan Ravelas, Banco de Oro chief market strategist. “The only manifestation that local political tension is having an effect on the market is the thin volumes, which mean investors are being cautious," he added. The country is in the middle of a political scandal involving allegations that top officials of the current administration allowed a government contract to be padded by $130 million in kickbacks. Volume traded reached 1.72 billion shares valued at P2.98 billion. Decliners trampled advancers 70 to 36 while 44 stocks were steady. Metropolitan Bank and Trust Co., the country’s biggest lender, fell P0.50 or 1.11 percent to P44.50. Philippine Long Distance Telephone Co., the country’s top phone firm, was steady at P2,940. Port operator International Container Terminal Services Inc. gained P0.50 or 1.61 percent at P31.50. Globe Telecom shot up P30 or 1.90 percent to P1,605. PNOC-Energy Development Corp. surged P0.30 or 4.92 percent to P6.40. - GMANews.TV