{
  "id": 5521983,
  "title": "Palace, economic team working on managing inflation, peso fall",
  "url": "https://urgent.news/2026/09/04/palace-economic-team-working-on-managing-inflation-peso-fall",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-04T06:51:00.000Z",
  "source": {
    "name": "Philippine Star Business",
    "slug": "philippine-star-business",
    "url": "https://www.philstar.com/stock-commentary/2026/09/04/2554036/palace-economic-team-working-managing-inflation-peso-fall"
  },
  "original_language": "en",
  "account": "The Philippine peso reached a record low of P62.565 per US dollar for the fourth consecutive time, according to Malacañang. The economic team is focusing on tighter fiscal discipline and better prioritization of spending, while the Bangko Sentral ng Pilipinas has raised interest rates and may intervene in foreign exchange markets to stabilize the currency. The stock market is reacting negatively overall, but there are significant differences among individual stocks. For instance, companies like SCC and PCOR could see EPS sensitivity ranging from +25-31%, while ICT might experience a positive impact of +21-25%. On the downside, JFC, SMPH, ALI, and MEG/AGI are expected to decline by 3-17%. The main drivers behind these moves are rising global oil prices and the weakened peso, which are causing inflation to increase and interest rates to rise. While fiscal discipline can support the peso's credibility, it may not be enough to offset the economic shock unless oil prices decrease. The biggest concern is that extended periods of high oil prices and a strong peso could turn into an issue with lower earnings and potentially lower stock valuations due to increased input costs and higher discount rates. Analysts suggest investing in energy-related companies, companies earning revenue in US dollars, and defensive sectors. They recommend reducing exposure to rate-sensitive sectors like property. SCC, PCOR, ICT, CNPF, and MWC are considered favorable bets, while JFC is recommended as a core outperforming stock despite a potential 3-5% macro EPS headwind. Investors are advised to be cautious with SMPH, ALI, MEG, and AGI until there is a reversal in the oil price trend and/or a stabilization of the peso.",
  "summary": "A weaker peso and expensive oil favor energy and dollar earners while increasing pressure on property, consumption and valuations.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Philippine Star Business",
        "title": "Palace, economic team working on managing inflation, peso fall",
        "url": "https://urgent.news/2026/09/03/palace-economic-team-working-on-managing-inflation-peso-fall",
        "published": "2026-09-03T16:00:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}