Stocks down on rate hike fears

Philippine stocks sank Monday as an indicator showing better employment prospects in the United States boosted the likelihood of a possible rate increase this year by the powerful US Federal Reserve.

The benchmark Philippine Stock Exchange index (PSEi) was down 0.67 percent, or 48.01 points, to 7,070.19 at Monday’s close as the broader all-shares index also declined 0.6 percent to 4,079.07.

Trading volume was relatively thin with 748.47 million shares valued at P3.73 billion changing hands.

US data last Friday showed that so-called nonfarm payrolls were up 271,000 last month, while the employment rate fell.

All subsectors here also closed in the red Monday, led by a 1.66-percent drop by property companies and 1.51 percent for mining and oil.

Data from the PSE showed that a total of 50 companies gained while 137 closed in the red and another 33 companies were unchanged.

Philippine Long Distance Telephone Co. was the most actively traded stock as it slipped 1.43 percent to P1,997 a share. This was followed by Cirtek Holdings Philippines, up 6.98 percent to P23; Robinsons Land Corp., down 2.84 percent to P29.05; Energy Development Corp., down 2.8 percent to P6.26, and Manila Electric Co., up 1.1 percent to P329.6 per share. Miguel R. Camus