The local stock market resumed its slide on the back of losses in Wall Street as interest rates rise ahead of the US Federal Reserves’ monetary policy meeting.
The main index fell 155.11 points or 2.40 percent to close at 6,319.42 as Conglomerates and Property firms led the retreat across the board.
Volume rose because of the VREIT listing with 3.65 billion shares worth P11.03 billion changing hands as losers swamped gainers 137 to 40 with 53 unchanged.
“Philippine shares fell ahead of the Fed's decision later tonight, while carrying the negative sentiment from last night’s US performance,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “today’s moves also came as investors digested another important inflation reading of May’s PPI, which showed that wholesale prices rose 10.8 percent and hovered near a record pace.”
Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “the local market plunged as investors braced for the Federal Reserve’s upcoming policy decision. Worries over an aggressive rate hike by the Fed drove caused the day’s sell off.”
He noted that, “the further depreciation of the Peso against the US Dollar added to the bearish sentiment. Finally, the rise of COVID-19 cases in the country, primarily in the National Capital Region, also weighed on sentiment.”