Stocks lower after elections, but off day’s low

The local stock market ended lower after the elections, although it managed to recover from a much steeper drop in the morning.

The PSEi lost 38.97 points or 0.58 percent to close at 6,720.93 after plunging over 200 points to the 6,500 level early in the session. The Mining and Oil counter led the retreat while Holding Firms recovered and managed to post a gain.

Volume rose to 3.17 billion shares worth P23.19 billion, including a block sale of P14 billion worth of ACEN shares, as losers swamped gainers 169 to 52 with 34 unchanged.

“Philippine shares slid, although at a smaller drop compared to the rest of the region as investors became concerned about the possibility of stagflation,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse declined amid mixed factors both local and overseas, right after the elections at home.”

She noted that, “Overseas, there are growing fears over a possible global recession amid rising inflation and increasing interest rates, in addition to the Russia-Ukraine tensions and Covid-19 lockdowns in China. These brought worries to most markets, including the Philippines.”

“Here at home, investors are dealing with election-related uncertainties. In particular, uncertainties towards the reception of the general public of the result, transition of power, and economic policies of the next administration especially on sustaining the recovery, slowing down the rise in prices, addressing labor market loopholes, and bringing our national debt to more manageable levels,” Alviar added.

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Credit belongs to : www.mb.com.ph

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