Bruised PH stock market faces continued volatility

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Inflation risks, worsened by the Philippine peso’s slide against the U.S. dollar, pushed the Philippine Stock Exchange Index into bear market territory in late September. | miguelrcamusINQ /PDI

These include the P28-billion IPO of billionaire Enrique Razon Jr.’s Prime Infrastructure Capital Inc. and those of North Star Meat Merchants Inc. and Upson International .

A recent report by Singapore’s DBS Group Research said the Philippines might be among the regional losers especially in the latter part of 2023. “Our concern is that consensus earnings projections appear too high and need a reality check. We are of the view that the street is underestimating the impact of the pace and magnitude of policy tightening on earnings in the next 12 months,” DBS said.

Inflation surged to 8 percent in November. It would remain elevated through next year as the BSP increased the full-year forecast to 4.5 percent to 4.3 percent—still above its target range of 2 to 4 percent. “We’ve been seeing consumers continue to spend despite high prices. As inflation [comes] down, we can expect this consumption trend to continue,” he said during a recent media briefing.

 

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