Economic growth risks restrain PH shares from advancing
The benchmark Philippine Stock Exchange index (PSEi) struggled to gain ground on Monday, prompting a modest pullback that ended still above the 6,400 level.
The PSEi slipped 0.53 percent, or 34.14 points, to 6,403.24 while the broader All Shares index sank 0.31 percent, or 10.67 points, to 3,385.96.
Trading volume saw a slight increase as 776.2 million shares valued at P6.24 billion changed hands while foreigners were net buyers for an amount totaling P271.84 million, stock exchange data showed.
Investors on Monday digested news that the Board of Investments approved new projects worth P644.4 billion from January through mid-November, which was up by more than 73 percent from the same period last year.
This also came amid looming economic growth risks from persistent inflation, weak external demand and higher interest rates, according to research firm Fitch Solutions.
The country’s growth was expected to slow to 5.9 percent from 7.4 percent this year, Fitch said.
It added the Bangko Sentral ng Pilipinas was expected to raise the benchmark policy rate by another 50 basis points before the end of 2022 and another 75 basis points in 2023.
“The central bank will remain resolute in reining in high domestic inflation, which we expect to average 5.8 percent in 2022 before moderating slightly to 4.8 percent in 2023,” it said.
Meanwhile, PSE subindices ended mixed as industrial, services, financials and mining and oil climbed while property and holding firms retreated.
AbaCore Capital Holdings Inc. was the top traded stock, rising 2.46 percent to P2.92 per share.
Overall, there were 97 losers against 87 advancers while 40 companies closed unchanged.INQ
