Stocks muted by rate hike woes
The local stock barometer ended the week on a sour note as investors braced for the possibility of an earlier-than-expected monetary tightening by the US central bank.
The main-share Philippine Stock Exchange index (PSEi) slipped by 36.54 points, or 0.53 percent, to close on Friday at 6,851.38, tracking mostly sluggish markets across the region.
“Philippine stocks posted another consecutive day of closing in the red, following the US Federal Reserve) Fed’s latest policy update and the rebalancing of the FTSE (Financial Times Stock Exchange),” said Luis Gerardo Limlingan, managing director at stock brokerage Regina Capital Development.
After its two-day policy-setting meeting, the Fed hinted that it would start hiking rates earlier than expected. Based on its latest dot plot, two 0.25-percentage rate hikes may be sanctioned in 2023 amid faster US economic growth and inflation.
For his part, Bangko Sentral ng Pilipinas Governor Benjamin Diokno has assured the public that the US Fed’s emerging hawkish bias won’t be an immediate threat to domestic monetary policy as he vowed to keep local interest rates at “rock bottom” levels for the time being.
For the week, the PSEi lost a total of 56.41 points, or 0.8 percent.The market was weighed down most by the property counter, which slid by 2 percent.
The financial counter lost 1.06 percent, while the holding firm and services counters both slipped by less than 1 percent.
On the other hand, the industrial and services counters both added less than 1 percent.
Value turnover amounted to nearly P9.8 billion. Foreign investors were mostly net sellers to the tune of P856.7 million.
SM Prime, BDO, PLDT, SMC and Megaworld all declined by over 2 percent.
Ayala Land, Metrobank and Globe all shed over 1 percent, while Ayala Corp. and Jollibee both slipped by less than 1 percent.
On the other hand, ICTSI racked up 4.58 percent, while URC and GT Capital both advanced by over 1 percent.
SM Investments, BPI, Meralco and Puregold all added less than 1 percent.
One notable gainer outside the PSEi was AC Energy, which rose by 4.17 percent.
Ever Gotesco, a recent market favorite, firmed up by 1.49 percent. —DORIS DUMLAO-ABADILLA
