Share prices ended lower Tuesday as investors found a reason to sell down the market after a credit rating agency downgraded its outlook on the economy.
The Philippine Stock Exchange index (PSEi) was down 118.74 points to 6,795.13, a 1.72 percent drop.
The broader all shares index was down 54.28 points to 4,215.76, a 1.27 percent drop.
Losers edged gainers 125 to 66 with 51 stocks unchanged. Trading turnover reached P5.78 billion.
The peso closed at 50 to the dollar, up from 50.12 on Monday.
The currency opened at 50.40, an intraday low, and hit a high of 49.95. Trading turnover reached $801.5 million.
Claire Alviar, analyst at Philstocks Financial Corp., said the market dropped after Fitch Ratings revised its Philippine outlook to “negative” from “stable” given the impact of the
COVID-19 (coronavirus disease 2019) pandemic.
Fitch on Monday lowered its outlook to ‘negative’ from ‘stable’, citing weakening fiscal finances and increased credit profile risks, though it affirmed Philippines’ investment grade score.
“This provides negative sentiment as the Philippines’ credit rating could be downgraded as well. A lower credit rating is expected to adversely affect our borrowing cost which is not welcome amid challenging times and a struggling economy,” Alviar said.
Most actively traded Ayala Corp. was down P10 to P790. International Container Terminal Services Inc. was up P1.50 to P165.50. Ayala Land Inc. was down P1.30 to P35.65. BDO Unibank Inc. was down P1.80 t P110.70. SM Investments Corp. was down P29 to P990. SM Prime Holdings Inc. was down P0.55 to P35.45. AC Energy Corp. was down P0.06 to P8.80.
Bank of the Philippine Islands was down P2.05 to P85.25. Universal Robina Corp. was down P4.50 to P138.50. Monde Nissin Corp. was down P0.28 to P16.64.
