The local stock barometer on Friday tumbled sharply ahead of the much-anticipated increase in US interest rates next week, tracking the downturn across Asian emerging markets.
The Philippine Stock Exchange index shed 85.59 points or 1.26 percent to close at 6,735.01. Apart from caution over the forthcoming US Federal Open Market Committee (FOMC) meeting next week, a slump in oil prices and jitters over the Chinese renminbi also gnawed on regional market sentiment.
The most battered counter was the services sub-index which fell by 2.79 percent while the industrial and holding firms both slipped by over 1 percent. Only the property counter gained albeit a modest one.
“Risk sentiment remained under pressure as oil prices fell another 2 percent and investors await next week’s FOMC,” Citigroup said in a research note.
In emerging markets, Citigroup said risk of further depreciation of the Chinese renminbi likewise soured sentiment. The Chinese currency has his its weakest level in more than four years.
“We think recent renminbi price action represents the PBoC (People’s Bank of China) letting off some steam ahead of the Fed lift off,” the bank said in a research note.
“With commodity prices unable to find a floor, dovish Fed expectations, and uncertainty from China, we remain bearish on EM (emerging markets),” the bank said.
At the local market, value turnover stood at P6.72 billion. There were more than twice as many decliners as advancers.
Investors sold down shares of RLC and AEV which both slipped by over 4 percent while PLDT tumbled by 3.99 percent. AGI, Megaworld and EDC all fell by over 3 percent. Doris Dumlao-Abadilla