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Stocks seen dropping on budget delay concerns
The Philippine Stock Exchange index (PSEi) closed lower on Friday due to investor concerns about potential delays in the enactment of the 2021 national budget.
The main index fell by 11.05 points or 0.18% to settle at 5,931.61.
A speakership dispute in the House of Representatives has postponed budget deliberations, pushing the resumption of sessions to mid-November from the original mid-October target.
Socioeconomic Planning Secretary Karl Kendrick T. Chua warned that a delayed budget could force the government to operate under its 2020 budget, which does not account for the ongoing coronavirus pandemic.
Investors opted to remain on the sidelines due to the perceived risks a delayed 2021 budget poses to the local economic recovery.
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