South Korean turmoil spooks investors

The local bourse closed flat on Wednesday following political tension in South Korea and amid inflation data jitters. By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) shed 0.06 percent, or 4.25 points, to 6,729.96.

Meanwhile, the broader All Shares Index added 0.02 percent, or 0.71 points, to close at 3,792.48. Stock exchange data showed that the PSEi traded within the 6,700 level during the session, as 507.45 million shares worth P7.95 billion changed hands.

Japhet Tantiangco, research head at Philstocks Financial Inc. said the sideways movement before settling in the red came as investors digested political turmoil in Seoul.

South Korea President Yoon Suk Yeol declared emergency martial law late on Tuesday night, but lawmakers were quick to vote against the declaration just hours later.

At the same time, investors were still waiting for new inflation data that would be released on Dec. 5, before making significant moves, according to Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

Analysts are expecting inflation to have accelerated versus October, but still within the lower end of the government’s 2 to 4 percent target range.

Only mining and holding firms closed in the red territory, while investors snapped up shares of banks and services companies the most.

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Bank of the Philippine Islands was the top-traded stock as it rose by 0.63 percent to P128.50 each, followed by BDO Unibank Inc., up 0.32 percent to P155.70; SM Prime Holdings Inc., down 1.32 percent to P26.10; International Container Terminal Services Inc., up 0.51 percent to P396; and Ayala Land Inc., up 1.89 percent to P29.70 per share.

Other actively traded stocks were SM Investments Corp., down 2.38 percent to P882.50; Ayala Corp., down 0.15 percent to P649; Manila Electric Co., up 0.96 percent to P483.80; PLDT Inc., down 0.88 percent to P1,348; and Metropolitan Bank and Trust Co., down 1.05 percent to P75.50.

Gainers outnumbered losers, 103 to 89, while 42 companies closed unchanged, stock exchange data showed.