PSEi down on budget worries

Share prices on the Philippine Stock Exchange closed in the red on Tuesday due to concerns over the proposed P4.5-trillion 2021 national budget.

The benchmark PSEi lost 13.82 points or 0.23% to 5,923.23 at the closing bell. The broader All Shares shed 2.68 points or 0.08% to 3,569.14.

“The local bourse declined amid economic worries as the 2021 national budget remains at risk of delay due to the turmoil at the House of Representatives,” Philstocks Financial equity analyst Japhet Tantiangco said.

Concerns over a reenacted budget were raised after the House of Representatives suspended session until November 16 without passing the lower chamber’s final version of the general appropriations bill as the budget bill was caught in the middle of the leadership row between Marinduque Representative Lord Allan Velasco and Taguig-Pateros Representative Alan Peter Cayetano.

On Tuesday, a total of 186 House members voted to ratify the election of Velasco as Speaker of the House after the same number of lawmakers elected him initially during a gathering of his supporters at Celebrity Sports Plaza in Quezon City on Monday. 

As this was happening, Cayetano tendered his irrevocable resignation as House Speaker.

President Rodrigo Duterte earlier called for a special session of Congress to ensure the timely passage of the proposed 2021 budget. 

The special session is scheduled for October 13 to 16 “to resume the congressional deliberations on the proposed 2021 national budget and to avoid any further delays on its prompt passage.”

The Department of Budget and Management is hoping that the House can pass the budget by Friday, while the Palace is eyeing the enactment of the 2021 GAA into law before the end of the year.

“Net foreign selling amounting to P702.1 million also contributed to Tuesday's decline,” Tantiangco said.

“Net value turnover today was anemic at P4.7 billion, below the year-to-date average of P5.9 billion, reflecting weak market confidence,” he added.

More than 3.834 billion shares valued at P5.001 billion, changed hands. Advancers led decliners, 98 to 95, and 59 issues were unchanged. — BM, GMA News