PH shares close lower as US Fed, BSP hike rates

Philippine shares were mostly lower on Thursday after the influential US Federal Reserve raised interest rates while opening the door to further hikes amid high consumer prices.

The Bangko Sentral ng Pilipinas also matched the increase with a 50-basis point (bp) increase on Thursday. The decision, made after the stock market closed, was anticipated by analysts.

The Philippine benchmark index shed 0.73 percent, or 48.27 points, to 6,566.80 while the broader All Shares index slipped 0.54 percent, or 18.68 points, to 3,430.89.

“Philippine shares put a pause in their winning streak as Wall Street digested the Fed’s latest rate hike decision. The Fed delivered a widely anticipated 50 bp rate hike at the conclusion of its December policy meeting, pushing its benchmark rate to the highest level in 15 years,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a note to investors on Thursday.

“However, Fed Chair Jerome Powell signaled more data was needed before the central bank would meaningfully change its view of inflation,” he added.

Meanwhile, a total of 2.06 billion shares valued at P7.27 billion changed hands while foreigners were net buyers amounting to P7.6 million.

BDO Unibank Inc. was the top traded stock as it sank 2.73 percent to P110.50 per share.

Overall, there were 101 losers against 71 advancers while 45 companies closed unchanged, stock exchange data showed.