Stocks fall on fears of global recession

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Local share prices fell again as investors worry about a possible global economic recession as well as the weakness of the peso against the dollar.

The PSEi dropped 102.77 points or 1.67 percent to close at 6,065.23 as Mining firms and Banks plunged. Volume remained thin at 1.08 billion shares worth P5.42 billion as losers swept gainers 143 to 65 with 36 unchanged.

He added that, “Portfolio managers were also speculating how the BSP would react to inflationary pressures, as they just released that they will be raising policy rates by 25bp to 2.50 percent right after market closed.“ Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local market declined further as the Peso’s weakness against the US Dollar continued to weigh on sentiment.”

He explained that, “The Peso, which has been declining below the 54.00 per US Dollar level, is seen to pose upside risks to inflation and discourage foreign investors from parking their funds in the Philippine market.”

 

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