Amid volatile stock market, the savvy thrive

Investors will remain uneasy as the Russia-Ukraine conflict continues while savvy players position themselves to capitalize on winners and losers in the ongoing corporate earnings season.

The Philippine Stock Exchange index closed a volatile week last week higher by 1.8 percent to 7,342.01.

The benchmark measure was lifted by strong 2021 earnings from billionaire Enrique Razon Jr.’s International Container Terminal Services Inc. and the Sy family’s flagship holding firm, SM Investments Corp.

Telco giant PLDT Inc. also rose last week after chair Manuel V. Pangilinan said they were closing in on the sale of cell towers for over P50 billion, which would pave the way for the declaration of a special dividend to stockholders.

Threats to the economy remain with Russia’s invasion of Ukraine pushing up prices of key energy and construction inputs—the effects of which had started to reverberate around the world.

Already, the Bangko Sentral ng Pilipinas warned of inflation heating up in the coming months due to rising oil prices.

ING Bank’s senior economist in the Philippines Nicholas Mapa commented in a research note the Monetary Board may raise interest rates sooner than expected.

While central bank has retained a “dovish stance for now,” Mapa said they “must also be wary to reign in inflation expectations, which will likely react sharply to soaring domestic pump prices and higher utility costs.”

The National Economic and Development Authority on Friday reiterated the need for subsidies for public utility drivers under this year’s national budget to blunt the impact of the war on vulnerable sectors.

—Miguel R. Camus INQ