Fear Rankles PSE Index
Uncertainty over the Ukraine crisis and its global economic impact as well as the spike in the inflation numbers rankled the stock market today, with the Philippine Stock Exchange index down to 7,158.07 points, a loss of 7.14 points or 0.10 percent.
Photo Insert: The Philippine Stock Exchange (PSE) Index, April 5, 2022
The low decline, though, together with the lower amount of trades, indicates an optimistic outlook for the longer term for the market.
Investors, already fearful of the continuing Ukraine crisis, were again hit by the 4 percent rise in the rate of inflation which robs consumers of their purchasing power. The rise in prices of goods and commodities is seen to result in the increase in interest rates that has been mirrored in the latest award of bids for treasury instruments, and government indebtedness aimed at funding the government's financial needs.
Only the financials and the mining and oil sub-indices produced gains with the former up by 0.65 percent and the latter by 0.10 percent. Value turnover was again sub-average at P4.17 billion indicating the investors' fear over the economic implications of the war in Ukraine and the attendant effects on inflation.
A rise in the price of oil and wheat also impacted the country's energy prices and that of pandesal.
Converge emerged as the most active stock with P358 million as it showed a gain of 35 centavos to P29.30 followed by Ayala Land which lost 45 centavos to P34.85 on trades of P344 million. Market bellwether SM Investments lost a peso to P889 while Globe also went down by P78 to P2,420.
It was a mixed bag of surprises in the market today with investors unsure of the market's bearings.
The sub-indices that showed losses were industrials, down by 0.24 percent, holding firms by 0.16 percent, services by 0.06 percent, and property by 0.59 percent. Among the losers which numbered 82, were SM Prime, down by 15 centavos to P38, Universal Robina, down P3.70 to P118, AC Energy, down by a centavo to P8.85, Bloomberry, down by a peso to P6.18,
The gainers, which numbered 88, included UnionBank, up by P2.20 to P101.50, PLDT, up by P3 to P1,818, Jollibee, up by P1.80 to P229.80, Puregold up by 55 centavos to P37.76, and Aboitiz Power, up by a peso to P37.