The local stock market fell as US bond yields rose while the Philippine peso weakened further.
The main index dove by 155.52 points or 2.32 percent to close at 6,554.08 with Conglomerates leading the retreat across the board. Volume was a little higher but remained anemic at 916 million shares worth P4.85 billion as losers swamped gainers 115 to 59 with 50 unchanged.
“Local shares took a plunge with the resumption of regular trading stateside. Last night's moves in the US came as investors tried to make a narrative on how tight the Fed's tightening campaign would be given the strong eco data and surging bond yield,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “The 10-year U.S. Treasury yield jumped to its highest level since June. The rate on the 30-year Treasury closed at its highest level since 2014.”
Philstocks Financial Assistant Research Manager Claire Alviar said The local bourse dropped “amid the depreciating peso and negative sentiment abroad.”
She explained that the peso depreciation “has negative effects on our country, especially since we are heavy on imports, making goods more costly.”
“Moreover, weak global economic growth weighs on sentiment after China's trade data missed estimates while recession fears grow in Europe,” added Alviar.