PHL shares down on DOLE order vs. Jollibee, upcoming inflation report

A labor order against fast-food giant Jollibee Foods Corporation prompted investors to sell stocks, dragging the Philippine Stock Exchange's main index back to 7,900-level, an industry expert said Wednesday.

The benchmark PSEi lost 51.05 points or 0.63 percent to 7,997.67 at the closing bell. The broader All Shares declined by 13.87 points or 0.28 percent to 4,858.03.

"Philippine markets sold off heavily in the afternoon after news that DOLE (Department of Labor and Employment) ordered to regularize over 6,000 workforce in Jollibee's management," Regina Capital Development Corporation business development head Luis Limlingan said in a market commentary.

"Not only was this limited to Jollibee, but many other companies that would be affected were suddenly sold down," Limlingan added.

The DOLE earlier announced that it has ordered Jollibee Foods to regularize 6,482 contractual workers deployed by its two contractors and another 704 workers under its Burger King franchise.

Jollibee is a publicly listed company and among the 30 companies composing the local stock barometer PSEi.

Inflation

The upcoming inflation report also prompted investors to unload positions, Limlingan added.

"Inflation will be out tomorrow and many are forecasting this to hit above 4.0 percent even using the 2012 base," he said.

Foreign funds bought P3.571 billions shares and sold P3.513 billion during the session, for a net buying position of P57.463 million.

More than 1.666 billion shares valued at P6.933 billion, changed hands. Decliners led advancers, 107 to 103, and 46 issues were unchanged. — BM, GMA News