The PSEi dropped despite some bargain hunting as higher rates and the weaker peso continue to dampen investor sentiment.
The main index lost 42.17 points or 0.67 percent to close at 6,259.54 although sectoral indices were evenly mixed. Volume dropped to 491 million shares worth P4.83 billion as gainers edged out losers 95 to 92 with 42 unchanged.
“Philippine shares closed below the 6,300 level on mounting recession fears after the Fed delivered a jumbo rate hike and its pledge for more similar rate adjustments the other day,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that share prices were also affected after initial jobless claims in the US came in lower than expected at 213,000 in the week ended Sept 17. Economists estimated 217,000 claims.
Philstocks Financial Assistant Research Manager Claire Alviar said “The local bourse dropped as investors digested the policy rate hikes of the Fed and the BSP while the peso remains low, still trading at 58 levels.”
She noted that, “The market’s decline also followed the negative cues from the US markets overnight amid recession fears. Moreover, investors also took more gains on the last trading day of the week to avoid any uncertainties over the weekend.”