The benchmark Philippine Stock Exchange Index closed this week below the 6,300 level after shares dropped 42.17 points to 6.259.54 on Friday, 0.67 percent lower than Thursday's close amid mounting recession fears.
Philstocks Financial Inc. assistant manager for research and online engagement Claire Alviar pointed out that the gloomy market performance this week was triggered by the investors' cautious stance on the policy rate hikes of the Federal Reserves and the Bangko Sentral ng Pilipinas.
This was on top of the weakening power of the peso against the United States dollar, which traded at 58 levels in the past few days.
"The index's decline also followed the negative cues from the US markets overnight amid recession fears. Moreover, investors also took more gains on the last trading day of the week to avoid any uncertainties over the weekend," Alviar said.
On Friday, the market's net market value turnover was P4.47 billion. Sectors were mixed, led by the Industrials as gainers while Holdings led the losers.
Monde Nissin Corp. had the biggest gain in the index, while JG Summit Holdings, Inc. was at the bottom after shedding 2.47 percent.
Rate hikes not over
"Index closed below the 6,300 level on mounting recession fears after the Fed delivered a jumbo rate hike and its pledge for more similar rate adjustments the other day. Investors digested the recent 50bp rate further hike made by the BSP, which also influenced the market's direction," Regina Capital Development Corp. managing director Luis Limlingan said.
