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Stocks drop on profit taking, higher gov t debt

February 3, 2021 | 9:00 pm Font Size AAA THE MAIN INDEX ended in negative territory on Wednesday following news on the government’s outstanding debt and as investors booked their profits after the market’s two-day rally. The benchmark Philippine Stock Exchange index (PSEi) fell 8.42 points or 0.12% to finish at 6,859.46, while the broader all shares index dropped 0.91 points or 0.02% to end at 4,143.26. Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the market ended lower following the release of data on the government’s outstanding debt. “Concerns over the jump of our national government’s outstanding debt and its possible repercussions to the economy weighed on (market) sentiment,” Mr. Tantiangco said.

Pandemic pushes Philippine gov t debt to P9 8 trillion

February 3, 2021 | 12:33 am Font Size AAA THE National Government’s (NG) outstanding debt reached P9.8 trillion at the end of December 2020, pushing the debt-to-GDP ratio to the highest in over a decade, as it borrowed more to fund the pandemic response. The Bureau of the Treasury (BTr) on Tuesday reported last year’s debt stock jumped by 26.7% from P7.731 trillion at the end of 2019, due to “higher funding requirements to respond to the coronavirus disease 2019 (COVID-19) pandemic.” Month on month, the BTr said the debt stock went down by 3.3% from the end-November level of P10.13 trillion after the government settled its outstanding loans to the central bank.

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