Hawkish Fed dampens PSEi

The local stock barometer pulled back sharply on Thursday, ignoring a robust first quarter Philippine economic growth report, as investors pocketed gains following a “hawkish” signal from the US Federal Reserve.

The Philippine Stock Exchange index lost 106.97 points or 1.42 percent to close at 7,427.33 after the US Fed signaled that it may hike interest rates as early as next month. Investors picked up the hawkish hint from the minutes of the US Federal Open Market Committee (FOMC)’s April meeting.

The local stock barometer ended a four-day run-up as the jitters over the US Fed—which battered most regional markets—overwhelmed favorable news about the Philippines’ 6.9-percent gross domestic product growth in the first quarter. This was in line with market consensus. Doris Dumlao-Abadilla