Stocks plunge as Ukraine invasion seen to weigh down Asian economies

The PSEi plunged to a six-month low as the impact of Russia’s invasion of Ukraine is seem to affect the growth of Asian economies.

The main index fell 295.24 points or 4.15 percent to close at 6,816.95, it’s lowest since Sept. 1, 2021 when it ended at 6,785.94. The Services sector led the drop across the board.

Philippine Stock Exchange index (PSEi)

A total of 2.59 billion shares worth a hefty P8.91 billion changed hands as losers dominated over gainers 190 to 34 with 28 unchanged.

“Philippine shares closed in the red as investors weighed remarks from Russian President Vladimir Putin about diplomatic discussions with Ukraine against a weaker-than-expected print on U.S. consumer sentiment,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “U.S. equities closed on its fifth straight week of losses last Friday amid the dragging Ukraine-Russia conflict.”

Gold eased, consolidating at the end of a volatile week, while oil prices settled higher on Friday as supply outlook has been disrupted by Russia’s invasion of Ukraine.

AB Capital Securities said “The stock market slumped anew as inflation pressures build up, with fuel retailers announcing yet another price hike for tomorrow.”

It added that, “The PSE index breached the key 7,000 support level again… and looks to be on its way down to the post-pandemic trend support at around 6,650.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse plunged this Monday as offshore concerns weighed on investors’ sentiment.”

He explained that, “Inflation worries remain elevated amid the projected fuel price hike to be implemented this Tuesday. Adding to this are the lingering uncertainties over the Russia – Ukraine war which pose upside risk to global oil prices.“

Meanwhile, Tantiangco said “the lockdowns imposed in China amid a new wave of COVID-19 infections pose downside risk to the global economy.”

He also observed that, “investors traded cautiously ahead of the Federal Reserve’s policy meeting this week wherein a rate hike was already possible.”

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Credit belongs to : www.mb.com.ph

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