Recession woes return, clipping PSEi’s upward momentum

The benchmark Philippine Stock Exchange index (PSEi) pulled back on Wednesday after investors pocketed profits after three consecutive days of gains. Regional indices were mostly lower, tracking losses in Wall Street overnight, amid global recession fears.

The PSEi ended the session down by 0.67 percent, or 42.22 points, to 6,303.19 while the broader All Shares index shed 0.34 percent, or 11.56 points, to 3,389.12.

PSE subsectors ended mixed: financials, holding firms and property sank while services, industrial and mining and oil advanced.

Some investors are also choosing to stay on the sidelines ahead of the inauguration of President-elect Ferdinand Marcos Jr. on Thursday as they await further details on the new administration’s economic agenda.

Major credit watchers Moody’s Investors Service and S&P Global Ratings also told the Inquirer the country’s mounting debts remained manageable, boosting the likelihood the country would keep its investment-grade rating during the Marcos administration.

Meanwhile, trading volume on Wednesday weakened further, with 532.4 million shares valued at P4.9 billion changing hands. Gainers nearly matched losers, 97-98, while 45 companies closed unchanged.

Converge ICT Solutions Inc. was the most actively traded stock on Wednesday as it gained 0.46 percent to P21.80 per share.

It was followed by Universal Robina Corp., up 1.41 percent to P108; BDO Unibank Inc., down 1.89 percent to P114.30; SM Prime Holdings Inc., down 3.22 percent to P36.10; and International Container Terminal Services Inc., up 0.46 percent to P195.90 per share.

Rounding out the actives list were Ayala Land Inc., down 1.47 percent to P26.80; Monde Nissin Corp., up 0.76 percent to P13.18; PLDT Inc., down 0.84 percent to P1,765; Ayala Corp., down 0.24 percent to P628; and SM Investments Corp., down 1.09 percent to P820 per share.