PLDT debacle adds to woes of inflation-battered PH stocks

The benchmark Philippine Stock Exchange index (PSEi) pulled back on lingering recession worries after central banks in the Philippines and United States raised interest rates anew.

The sharp selldown in PLDT shares further weighed on the PSEi, which fell 1.27 percent or 82.23 points to 6,414.27.

The broader All Shares index was also down 0.97 percent, or 32.82 points, to 3,367.31.

“Local and regional stocks continued their descent as investors struggled to shake off recession worries after the [US Federal Reserve] upped its forecast for future hikes above previous expectations, saying that it now expects to hike rates to 5.1 percent,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors on Monday.

PLDT, one of the PSEi index “blue chip” stocks, plunged over 19 percent as investors reacted to the company’s unprecedented disclosure of an internal investigation of over billions of pesos in overspending that goes back several years.

Services was the top loser among PSE subsectors as it dropped nearly 6 percent, followed by financials, down 0.97 percent and industrial, down 0.92 percent. Property was the sole gainer as it added 1.17 percent.

PSE data showed 1.3 billion shares valued at P18.72 billion changed hands while foreigners were net sellers in the amount of P1.01 billion.

PLDT was the top traded stock as it fell 19.35 percent to P1,192 per share. INQ