Philippine Stock Market is at its lowest Monday, January 11. According to Bloomberg Business, the Philippine Stock Exchange Index fell sharply closing to 6,288.26 in Manila. This is the steepest level since Feb. 18, 2014.
Reportedly, the decline shaved about $61 billion from the country’s stocks as of Monday’s close. Rappler noted PSE President and CEO Hans B. Sicat’s statement “that the negative developments overseas continue to affect the performance of global equities, including the Philippine market.”
“Money managers, including foreign funds, are assessing and rebalancing their exposure to emerging markets following the sell-off,” Sicat said.
Sicat added that the Philippine Stock Market situation “does not change what is happening in the real economy with the growth drivers seemingly intact, citing the strong business process outsourcing performance, robust consumer sector, lower inflation, and growth in infrastructure.”
“We hope that the resilience and sound fundamentals of the local economy will be apparent in the medium term and can help temper the volatility over the coming periods,” Sicat said.
Stocks expert Marvin Germo advised investors to manage their expectations since the Philippine Stock Market is not showing any signs of reversing the downtrend.
But despite the drop in PSEi, Germo said that it is still relatively expensive.
“In spite of it going down and is still expensive, the country’s growth prospects still remain intact and good,” Germo wrote for the online publication.