THE local bourse pulled back by 54.32 points to close at 5,934.27 after three straight days of gains due to negative signals from Wall Street and the higher unemployment rate in August which registered at 5.3 percent.

“For the month of August 2022, the unemployment rate was at 5.30 percent, higher than July 2022’s 5.20 percent,” said Clair Alviar, research associate at Philstocks Financial Inc. “But on the upside, the labor force participation rate, or the economy’s active workforce, improved overall.”

“The Philippine Stock Exchange index also corrected lower a day after the inflation data went up to a new 4-year high of 6.9 percent and after the latest slight pick-up in the latest unemployment rate but nevertheless among the lowest/best since October 2019,” Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said. “This was offset by the banks’ nonperforming loans ratio further easing to near the lowest in two years as the economy continues to reopen further toward greater normalcy and amid continued stronger Bureau of Customs revenue collections data.”

The decision of OPEC+ (Organization of Petroleum Exporting Countries plus) to cut oil production also brought negative sentiment to the market as this may lead to higher domestic oil prices which could upwardly pressure the inflation rate.

In the United States, Capital Development Corp. Managing Director Luis Limlingan said that investors kept tabs on economic data to see if inflation is cooling off or if the Federal Reserve’s rate hikes are pushing the US closer to a recession.

“On Wednesday, ADP showed that the labor market remained strong among private firms in September 2022, with 208,000 jobs created during the month, “Limlingan said.

On Friday, US time, the September jobs report from the Bureau of Labor Statistics will be released, giving the central bank and investors another piece of data.

OPEC+ resolved to impose deep output cuts by 2 million barrels per day to shore up prices. Brent crude futures jumped by 1.1 percent, settling at $92.82 per barrel. On the other hand, the US WTI (West Texas Intermediate) crude futures also rose by almost 1 percent to $87.37 per barrel.

Many investors were still on the sidelines on Thursday as market participation remained weak with net market value turnover registering at P3.67 billion only.

Except for services, which was up 0.73 percent, all sectors dropped this session with industrials having the biggest decline at 2.11 percent.

Decliners won against advancers, 103 to 84, while 41 securities remained unchanged.