PH stocks suffer big drop anew with inflation burden creeping in
Philippine stocks saw another sharp selloff on Monday as inflationary pressures caused by the Russian invasion of Ukraine weighed on the county’s growth outlook while the US Federal Reserve nears a decision to raise interest rates this week.
The benchmark Philippine Stock Exchange index (PSEi) fell 4.15 percent, or 295.24 points, to 6,816.95 while the broader all-shares index shed 3.37 percent, or 126.87 points, to 3,638.49.
All major subsectors fell as appetite for risky investments waned. Bangko Sentral ng Pilpinas Governor Benjamin Diokno sought to calm worries on Monday, saying in a tweet that strong economic fundamentals “could insulate the domestic economy during the current risk-off episode.”
Meanwhile, Capital Economics slashed the gross domestic product (GDP) outlook forecast for the Philippines from 8 percent to 7.2 percent for 2022.
“Movements in energy prices have no direct impact on real GDP. But there are indirect effects caused by shifts in real income. For net-energy consuming economies, which includes most of Asia, the main hit from higher prices will come through a reduction in real incomes,” Capital Economics senior Asia economist Gareth Leather said.
Services, down 5.27 percent, was the biggest loser among PSE subsectors. Mining and oil also dropped 4.64 percent, while property stocks tumbled 3.92 percent.
Article continues after this advertisementA total of 2.6 billion shares valued at P8.91 billion changed hands, while foreigners were net sellers to the tune of P1.52 billion.
Article continues after this advertisementThere were 190 decliners against 34 advancers, while 28 companies closed unchanged.
Ayala Corp. was the most actively traded on Monday as it sank 5.12 percent.
It was followed by Ayala Land Inc, down 7.60 percent to P34.05; SM Prime Holdings Inc., down 1.45 percent to P37.45; SM Investments Corp., down 3.19 percent to P880; and International Container Terminal Serves Inc., down 6.19 percent to P212 per share.
Other heavy movers were BDO Unibank Inc., down 2.28 percent to P124.10; PLDT Inc., down 6.28 percent to P1,715; Jollibee Foods Corp., down 5.04 percent to P218.40; Universal Robina Corp., down 5.01 percent to P102.30; and Semirara Mining and Power Corp., down 6.77 percent to P28.90 per share. INQ
