Stocks fall on concerns over slowing economy

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Local share prices fell on continuing concerns over China’s economy and risks posed by Russia’s invasion of Ukraine.

The main index dropped 116.11 points or 1.66 percent to close at 6,863.91 as the Mining and Oil counter led all sectors in the retreat. Volume jumped to 816 million shares worth P8.78 billion due to a block sale of ALI shares as losers swept gainers 138 to 49 with 43 unchanged.

He added that sentiment also suffered after “Moody’s Analytics trimmed its Philippine GDP forecast this year to 6.1 percent due to the impact of slower global demand and faster inflation on the economy.” Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market declined further on the back of the negative spillovers from Wall Street.“

He explained that “This comes amid global economic slowdown worries as China’s economy continues to deal with its worsening COVID-19 situation, while the Russia – Ukraine war poses risks of further escalation.“ “Wednesday’s decline is also attributed to investors’ reaction over the earlier rate hike signals from the Bangko Sentral ng Pilipinas” Tantiangco added.

 

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