The main index already lost big at the start of the week, falling by 2 percent over two days as inflation for January rose to 8.7 percent, which could dampen optimism for the economy this year.
All other sub-indices fell with the exception of the Mining and Oil index that rose 389.07 points to close at 11,418.11 points. The broader All Shares index fell 52.29 to 3,653.17, the Financials index declined 19.29 to 1,831.11, the Industrial index shed 160.48 to 9,851.45, the Holding Firms index retreated 129.55 to 6,644.65, the Property index was down 58.20 to 2,999.27 and the Services index plunged 47.35 to 1,723.74.Top gainers for the week were Megawide Construction Corp.
“The possibility of a 50 basis point rate hike is expected to be priced in, following the Philippines’ strong January inflation data. This in turn could weigh on the local bourse. Aside from this, investors may also look towards our upcoming OFW remittances data for clues on the local economy,” Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc., said.
“Participants should brace for further volatility in the coming weeks as the broader market catches up to what is likely to be tempered outlook for 2023, at least on the dividend and capex side. The real challenge is in the search of alpha plays that will outperform their sector peers, but they are not non-existent, and may be spotted by cashflow metrics as liquidity remains in high demand.”Maybank Securities said it prefers domestic consumption proxy, SM Investments Corp.