Philippine stocks dip on weaker export and higher unemployment data



Philippine stocks slumped, heading for the biggest loss since September 2011, after the nation's unemployment rate climbed to a three-year high and exports contracted more than expected.

The Philippine Stock Exchange Index slumped 4.6 per cent to 6,556.65 at the close in Manila, ending a three-day rally. The measure's 30-day volatility climbed to 27.9, the highest since November 2011, and valuations dropped to a four-month low. Unemployment increased to 7.5 per cent in the three months through April, the highest since the quarter ended June 2010, the National Statistics Office said on Tuesday. Exports shrank 12.8 per cent in April, the office said, exceeding the 5.3 per cent median of 12 estimates in a Bloomberg survey.

"The high unemployment rate casts a shadow of doubt on the strength of economic growth and its sustainability," Jonathan Ravelas, chief market strategist at Manila-based BDO Unibank. "Whether the perception is right or wrong, it raises questions. The exports data highlights the world economy remains fragile."

The jobless rate increased even after the government reported on May 30 gross domestic product expanded 7.8 per cent in the three months ended March, the fastest pace in almost three years. The economy will grow 6 per cent to 7 per cent this year, according to official forecasts.

The Philippine Stock Exchange Index has retreated 11 per cent since closing at a record 7,392.20 on May 15. The benchmark gauge has tumbled since US Federal Reserve Chairman Ben S Bernanke's comment on May 22 that policy makers could consider reducing the pace of monetary stimulus triggered a selloff by overseas investors.

Still, the measure has gained 13 per cent this year, heading for a fifth annual advance, boosted by better-than-expected economic growth, low interest rates and as the nation won two upgrades in sovereign debt rating to investment grade.

* Bloomberg News

Company Profile

Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices

BMW M4 Competition

Engine: 3.0 twin-turbo inline six-cylinder
Transmission: eight-speed
Power: 503hp
Torque: 600Nm
Price: from Dh617,600
On sale: Now

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others

The specs

Engine: 2.3-litre 4cyl turbo
Power: 299hp at 5,500rpm
Torque: 420Nm at 2,750rpm
Transmission: 10-speed auto
Fuel consumption: 12.4L/100km
On sale: Now
Price: From Dh157,395 (XLS); Dh199,395 (Limited)

Company Fact Box

Company name/date started: Abwaab Technologies / September 2019

Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO

Based: Amman, Jordan

Sector: Education Technology

Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed

Stage: early-stage startup 

Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.

COMPANY PROFILE

Company name: Klipit

Started: 2022

Founders: Venkat Reddy, Mohammed Al Bulooki, Bilal Merchant, Asif Ahmed, Ovais Merchant

Based: Dubai, UAE

Industry: Digital receipts, finance, blockchain

Funding: $4 million

Investors: Privately/self-funded

Director: Nag Ashwin

Starring: Prabhas, Saswata Chatterjee, Deepika Padukone, Amitabh Bachchan, Shobhana

Rating: ★★★★

UAE currency: the story behind the money in your pockets
COMPANY PROFILE

Company: Growdash
Started: July 2022
Founders: Sean Trevaskis and Enver Sorkun
Based: Dubai, UAE
Industry: Restaurant technology
Funding so far: $750,000
Investors: Flat6Labs, Plus VC, Judah VC, TPN Investments and angel investors, including former Talabat chief executive Abdulhamid Alomar, and entrepreneur Zeid Husban

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Abu Dhabi GP starting grid

1 Lewis Hamilton (Mercedes)

2 Valtteri Bottas (Mercedes)

3 Sebastian Vettel (Ferrari)

4 Kimi Raikkonen (Ferrari)

5 Daniel Ricciardo (Red Bull)

6 Max Verstappen (Red Bull)

7 Romain Grosjean (Haas)

8 Charles Leclerc (Sauber)

9 Esteban Ocon (Force India)

10 Nico Hulkenberg (Renault)

11 Carlos Sainz (Renault)

12 Marcus Ericsson (Sauber)

13 Kevin Magnussen (Haas)

14 Sergio Perez (Force India)

15 Fernando Alonso (McLaren)

16 Brendon Hartley (Toro Rosso)

17 Pierre Gasly (Toro Rosso)

18 Stoffe Vandoorne (McLaren)

19 Sergey Sirotkin (Williams)

20 Lance Stroll (Williams)

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Georgia Gibson (Newcastle United)
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Mackenzie Hunt (Everton)
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Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5

MATCH INFO

Fixture: Ukraine v Portugal, Monday, 10.45pm (UAE)

TV: BeIN Sports


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