Stocks plunge amid Cabinet shakeup

MANILA, Philippines — The local stock market took a heavy beating yesterday amid concerns over President Marcos’ call for the courtesy resignation of all Cabinet secretaries.

The benchmark Philippine Stock Exchange index shed 1.1 percent or 69.98 points to cap off yesterday’s session at 6,305.37.

Also taking a dive was the broader All Shares index, which fell by 0.8 percent or 29.76 points to 3,708.18.

AP Securities research head Alfred Benjamin Garcia said Philippine equities tracked the decline in global markets as sentiment soured on concerns over the budget deficit in the United States.

“Local investors were also jolted by the prospect of a major Cabinet reshuffle following the President’s surprise call for secretaries and Cabinet-level officials to tender their courtesy resignation following the midterm elections,” Garcia said.

Luis Limlingan of Regina Capital said the local bourse ended in the red as risk-off sentiment prevailed following the US credit downgrade and the Philippines’ widened balance of payments deficit.

“Investor caution was further heightened by domestic political uncertainty after President Marcos Jr.’s call for the courtesy resignation of his Cabinet secretaries, seen by some as a possible shift in policy direction,” Limlingan said.

Except for mining and oil, which posted a 1.12 percent gain, all sectors were in the red, most of which declined by more than one percent.

The property index took the biggest hit, plunging by 1.31 percent, followed by holding firms with a 1.23-percent drop.

Market breadth was negative as decliners battered advancers, 112 to 66, while 57 issues were unchanged.

Total value turnover stood at P6.39 billion.