‘Depleted’ gov’t funds weigh down local shares
DESPITE global equities’ recovery, Philippine stocks declined further on Wednesday after the President said funds are depleted amid mounting losses from Typhoon Odette and resurfacing fears from the Omicron virus variant.
The benchmark Philippine Stock Exchange index retreated 47.87 points or 0.66% to close at 7,119.19 on Wednesday, while the broader all shares index lost 8.45 points or 0.22% to 3,797.22.
“The stock market ended still in the red today despite the recovery in the global equities. Investors remained apprehensive about the economic impact of Typhoon Odette, which battered major parts of the Visayas and Mindanao,” Papa Securities Corp. Equities Strategist Manny P. Cruz said in a Viber message.
The Department of Agriculture on Wednesday said Odette hurt the farm sector, which accounts for 10% of the country’s economic output, leaving around P2.6-billion damage for the farming and fisheries sectors.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco noted that the agricultural and infrastructure damage together with other disruptions in the Visayas and Mindanao could weigh on the economy’s recovery.
Diversified Securities, Inc. Equity Trade Aniceto K. Pangan said in a text message that the market remained on the decline after Philippine President Rodrigo R. Duterte remarks.
In a televised meeting with Cabinet officials on Tuesday night, Mr. Duterte said: “I am really worried because, let me be frank to the public, our money here in the Philippines is depleted [by the pandemic], even coping up with the growing expenses for the typhoon victims.”
Mr. Pangan said the comment “indicated that we have depleted funds to address Omicron-driven coronavirus disease 2019 (COVID-19) surge thus insinuating of possible stricter restrictions to contain and limit cost through localized lockdown in order to contain the spread of this new variant.”
Last week, Mr. Duterte also said in his talks with government economists that the budget had been “immensely depleted” by COVID. The government announced three confirmed Omicron cases in the country.
Meanwhile, Luis A. Limlingan, head of sales at Regina Capital Development Corp., said that the index finished lower due to investors taking profit ahead of the holidays.
The stock exchange will close at 12:10 p.m. on Dec. 24 and Dec. 31.
Meanwhile, most sectoral indices closed in the red except for industrials, which gained 146.79 points or 1.44% to 10,339.77; and mining and oil, which climbed 43.77 points or 0.48% to close 9,042.93 on Wednesday.
Holding firms fell 126.50 points or 1.80% to 6,877.84; property dropped 20.30 points or 0.63% to 3,156.21; financials lost 4.01 points or 0.25% to 1,600.53; and services decreased 0.33 points or 0.01% to 1,979.74.
Value turnover declined to P6.03 billion on Wednesday with 1.61 billion issues traded from the P6.86 billion recorded on Tuesday with 955.83 million shares traded.
Advancers closely beat decliners, 86 against 83, while 69 names closed unchanged.
Foreign net selling fell on Wednesday with P173.79 million from the P372.02 million net outflows the previous trading day. — Marielle C. Lucenio
