Philippine stocks saw another strong sell-off on Monday as inflationary pressures caused by Russia’s invasion of Ukraine weighed on the country’s growth outlook as the US Federal Reserve nears a decision to raise benchmarks. interest rate this week.
The benchmark Philippine Stock Exchange Index (PSEi) fell 4.15%, or 295.24 points, to 6,816.95, while the broader all-stock index lost 3.37 %, or 126.87 points, to 3,638.49.
All major sub-sectors fell as the appetite for risky investments waned. Bangko Sentral ng Pilpinas Governor Benjamin Diokno sought to quell concerns on Monday, saying in a tweet that strong economic fundamentals “could isolate the national economy during the current episode of risk aversion.”
Meanwhile, Capital Economics cut the Philippines’ gross domestic product (GDP) forecast from 8% to 7.2% for 2022.
“Moves in energy prices have no direct impact on real GDP. But there are indirect effects caused by changes in real income. For net energy-consuming economies, which include most of Asia, the main impact of higher prices will come from reduced real incomes,” said Gareth Leather, senior economist at Capital Economics for the Asia.
Services, down 5.27%, was the biggest loser among the ESP sub-sectors. Mining and oil also fell 4.64%, while real estate stocks fell 3.92%.
A total of 2.6 billion shares valued at 8.91 billion pesos changed hands, while foreigners were net sellers of 1.52 billion pesos.
There were 190 declines against 34 advances, while 28 companies closed unchanged.
Ayala Corp. was the most actively traded on Monday with a 5.12% drop.
It was followed by Ayala Land Inc, down 7.60% to P34.05; SM Prime Holdings Inc., down 1.45% to 37.45P; SM Investments Corp., down 3.19% to P880; and International Container Terminal Serves Inc., down 6.19% to P212 per share.
BDO Unibank Inc., down 2.28% to 124.10P; PLDT Inc., down 6.28% at 1,715P; Jollibee Foods Corp., down 5.04% at P218.40; Universal Robina Corp., down 5.01% to P102.30; and Semirara Mining and Power Corp., down 6.77% to 28.90 pesos per share. INQ
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