The benchmark Philippine stock index slid amid a global selloff, as investors awaited Ferdinand Marcos Jr.’s economic policies following his landslide win in the presidential election.

The Philippine Stock Exchange Index fell as much as 3.1% before paring declines. Most of the 30 components of the benchmark dropped, with AC Energy Corp., San Miguel Corp., Wilcon Depot Inc and Robinsons Land Corp. leading the losses.

Equities are unlikely to rebound until Marcos lays out a plan to spur growth, tame inflation and address the nation’s ballooning debt, according to analysts. The slide in the benchmark gauge also reflects losses in regional shares as rising U.S. interest rates and slowing Chinese growth hurt sentiment.

“Many investors are likely to be in a wait-and-see mode,” Robert Ramos, who helps manage 140 billion pesos ($2.7 billion) as head of the trust and investments group at Rizal Commercial Banking Corp., said before the start of trading. “They will wait for the new government to discuss its plan for the economy and how we get out from the impact of the pandemic.”

Based on the broader Philippine Stock Exchange All Share Index’s loss of up to 2.9%, today’s selloff erased as much as 488 billion pesos in market value. The Philippine Stock Exchange Index has fallen more than 6% this year, outperforming the MSCI AC Asia Pacific Index which dropped almost 18%.

Source:
courtesy of BLOOMBERG

by Ian C Sayson

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]