PHL shares decline as Russian attacks continue
SHARES slid on Monday as market sentiment remained negative amid the ongoing war between Russia and Ukraine.
The benchmark Philippine Stock Exchange index (PSEi) went down by 53.94 points or 0.73% to close at 7,288.07 on Monday, while the broader all shares fell by 28.54 points or 0.73% to 3,866.98.
“Philippine shares dropped as the Russia-Ukraine conflict sparked nuclear fears,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“The market continued to react to supply disruptions stemming from Russia’s ongoing invasion of Ukraine and the possibility of a ban on Russian oil and natural gas,” Mr. Limlingan said.
Russian forces that seized Ukraine’s Zaporizhzhia nuclear power plant have now placed staff running the facility under their command and restricted communications with the outside world, the United Nations nuclear watchdog said on Sunday, Reuters reported.
The International Atomic Energy Agency said it was “extremely concerned” about developments at Zaporizhzhia, Europe’s largest nuclear power plant, citing information from Ukraine’s nuclear regulator.
Ukrainian authorities said Russian forces had seized control of Zaporizhzhia on Friday after setting an adjacent training facility on fire. Russia’s defense ministry blamed the attack on Ukrainian saboteurs, calling it a “monstrous provocation.”
On Monday, Brent crude soared near $130 a barrel, its highest since 2008, prompting the United States and Europe to consider a Russian oil import ban amid supply fears.
“Market sharply contracted but recovered. It’s apparently a knee-jerk reaction to the stepped-up oil embargo talks and inflation fallout on oil importing countries like the Philippines,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message.
Regina Capital’s Mr. Limlingan said investors are waiting for the release of economic data here and abroad, such as the January Philippine trade balance report and US inflation and jobs data.
Majority of sectoral indices ended in the red on Monday except for mining and oil, which surged by 872.15 points or 6.54% to 14,199.22.
Meanwhile, industrials declined by 245.60 points or 2.43% to 9,830.84; financials went down by 18.26 points or 1.08% to 1,670.45; holding firms fell by 51.11 points or 0.72% to 7,009.21; services decreased by 3.61 points or 0.18% to 1,955.12; and property lost 4.93 points or 0.14% to 3,493.61.
Value turnover increased to P8.73 billion with 2.35 billion shares changing hands from the P5.22 billion or 1.33 billion issues seen on Friday.
Decliners outnumbered advancers, 147 versus 66, while 34 names closed unchanged.
Net foreign selling climbed to P259.27 million on Monday from P164.23 million on Friday. — LMJCJ with Reuters
