Market tumbles; URC, Ayala Corp. buck trend

STOCKS tumbled Monday, after S&P Global Ratings reported that major companies in the Philippines face tougher sailing this year.

The PSE index, the 30-company benchmark of the Philippine Stock Exchanged, fell 84 points, or 1.27 percent, to close at 6,600.74, as all six subsectors declined.

The index representing all shares also went down by 30 points to settle at 3,525.64 on a value turnover of P5.87 billion. Losers outnumbered gainers, 92 to 86, while 58 issues were unchanged.

Only two of the 10 most active stocks ended in the green. Universal Robina corp. gained 1.69 percent to P150.80, while Ayala Corp. rose 1.46 percent to P659.50.

“The outlook for large Philippine companies this year can be summarized in a few words: persisting growth aspirations, more leverage, slowing profit growth but generally sound liquidity,” S&P Global Ratings credit analyst Xavier Jean said in a report.

“The large diversified Philippine groups have been the most active spenders and those whose leverage has increased the fastest among the top-40 companies,” said Jean. “They also resumed spending more aggressively than the smaller firms after the lows in 2020.”

Meanwhile, Asian and European markets rose Monday, tracking a rally on Wall

Street fueled by a strong rebound in US regional banks and forecast-beating jobs data that eased fears over a recession in the world’s top economy.

But investors remain wary of any further upheaval in the US financial system following last week’s turmoil that saw the sale of the embattled First Republic Bank to JPMorgan Chase.

That followed the collapse in March of three other banks and the takeover of Credit Suisse by UBS, which sparked panic on trading floors.

An indication last week from the US Federal Reserve that it could pause its interest rate hikes—after announcing another increase—did little to soothe concerns.

Still, a surge Friday in US regional lenders and the strong jobs report provided a shot in the arm for Asian markets at the start of the week.

AFP BRIDGE BLASTING. People take pictures of the Rahmede highway bridge during its blasting on May 7, 2023 on the A45 motorway, near Luedenscheid, western Germany. During a routine inspection of the 453-meter-long Rahmede viaduct in December 2021, inspectors discovered deformations in the steel wall that could a ect the bridge’s load-bearing capacity. According to the motorway company, a new construction will take at least ve years.