Stocks suffer more losses on overseas concerns

The local stock market dropped further due to lack of fresh leads and with the approaching Lenten break.

The main index lost 92.93 points or 1.33 percent to close at 6,895.36 with the Industrial and Services sectors leading the retreat across the board. Volume improved but remained thin at 1.5 billion shares worth P5.0 billion as losers routed gainers 113 to 50 with 60 unchanged.

Philippine Stock Exchange index (PSEi)

“Philippine shares were sold down again with the long weekend nearing, and as investors brace themselves for an aggressive hawkish Stance from the Fed and ahead of the March CPI release today,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Further escalation in Ukraine as well as tight lockdowns in key areas in China (including Shanghai) have led to a broad sell-off across assets over the past week.“

“The combination of downward revisions in 2022 Consensus growth expectations in the US and Europe and the Fed signaling a steep hiking cycle have also spurred recession fears across investors,” added Limlingan.

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse fell further as investors took cues from Wall Street’s overnight decline. Investors took a cautious stance while waiting for the US’ March inflation data which could give clues over the Federal Reserve’s next policy steps.”

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