The local stock market weakened on belief that the US Fed will continue to hike rates at an aggressive pace.

The main index lost 62.23 points or 0.92 percent to close at 6,690.27 with the Services counter leading losses across the board. A total of 1.26 billion shares worth P5.98 billion changed hands as losers beat gainers 124 to 58 with 51 unchanged.

“Philippine shares settled in the red amid mounting concerns over rising rates and tighter U.S. monetary policy, which reflected the blunt remarks made by Fed Chair Powell in the recently held Jackson Hole,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Wall Street suffered a sharp sell-off on Friday, when Federal Reserve Chairman Jerome Powell’s short and blunt remarks in Jackson Hole, Wyoming, appeared to extinguish hopes of the central bank changing its aggressive course of rate hikes in the months ahead.”

“After returning from the holiday, the main index dropped as local investors reacted to Fed Chair Jerome Powell's hawkish speech in Jackson Hole,” said Philstocks Financial Research and Engagement Officer Claire Alviar.

She noted that, “The hawkish stance of the Fed despite the easing of inflation brought negative sentiment as this may lead to a US recession. At home, the peso is weakening once again, trading at 56 levels. We may expect the peso to depreciate further if the Fed will continue to hike interest rates.”