The local stock market slid further after the US Federal Reserve hiked rates by an aggressive 75bps as expected.
The main index dropped 39.98 points or 0.63 percent to close at 6,301.71 as the Property sector led the retreat while Bank advanced. Volume increased to 641 million shares worth P5.92 billion as losers beat gainers 156 to 41 while 34 were unchanged.
“Philippine shares struggled to find a footing on a rock as traders weighed another hefty rate hike from the Fed,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “In its two-day FOMC meeting, the Fed announced a well-expected 75bp rate hike and pledged to keep its aggressive stance in pushing the interest rates to combat inflation until it reaches a terminal rate of 4.6 percent in 2023.”
Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse declined further as the Federal Reserve (Fed) raised interest rates by 75 bps while the Bangko Sentral ng Pilipinas (BSP) hiked rates by 50 bps to fight inflation.”
She noted that, “The Fed's decision brought most equity markets into the red, especially with the expectation that they will remain aggressive for the rest of the year. At home, BSP's 50 bps rate increase could help the peso but high policy rates may temper the demand.”