The local stock market weakened further, following the decline in US bourses.
The main index dropped 46.81 points or 0.65 percent to close at 7,109.26 as Holding Firms led the retreat of all indices. Volume improved but was still thin at 11.53 billion shares worth P4.98 billion as losers beat gainers 102 to 79 with 51 unchanged.
“Philippine stocks weakened as Federal Reserve Governor Lael Brainard indicated the central bank could take a more aggressive approach to its tightening policy,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “On top of this, recessionary fears continued to spook investors as Deutsche Bank became the first major Wall St. bank to forecast a U.S. recession is ahead, citing the Fed getting more aggressive to fight inflation.”
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse declined further as the surge in the Philippines’ inflation rate raised worries that the Bangko Sentral ng Pilipinas may upwardly adjust its policy rates earlier.”
He also noted that, “The negative cues from Wall Street amid fears of aggressive policy steps by the Federal Reserve also weighed on the local market.”