The benchmark Philippine Stock Exchange index is still struggling to recover from a slump, especially after the US Federal Reserve kept its aggressive stance in pushing a 75 basis points rate hike to combat inflation woes.
On Thursday, the index plunged by 39.98 points to 6,301.71, down by 0.63 percent from Wednesday's close.
"The Fed's decision brought most equity markets into the red, especially with the expectation that they will remain aggressive for the rest of the year."
"At home, BSP's 50 bps rate increase could help the peso but high policy rates may temper the demand," Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar said. The net market value turnover was at P5.62 billion yesterday. The decliners edged advancers at 156 to 41, while 34 issues were unchanged.
Banks were the sole gainer, up by 0.69 percent, as they may benefit from the rising interest rates. However, the property sector, which is vulnerable to the changes in the policy rate, declined the most by 2.80 percent.
Wilcon Depot Inc. led the gainers in the index while Converge ICT Solutions Inc. plummeted by 11.30 percent.
Shaky trading
Shares struggled to find a footing on a rock as traders weighed another hefty rate hike from the Fed, Regina Capital Development Corp. managing director Luis Limlingan said.
In its two-day Federal Open Market Committee meeting, the Fed announced a well-expected 75 bp rate hike and pledged to keep its aggressive stance in pushing the interest rates to combat inflation until it reaches a terminal rate of 4.6 percent in 2023.
On the economic front, the latest data on weekly jobless claims is expected Thursday.
