Stocks drop on rate hike concerns


Local share prices weakened for the second day as US and Philippine monetary authorities are expected to raise interest rates soon.

The main index lost 47.35 points or 0.70 percent to close at 6,709.34 with Banks and Property leading the retreat although Industrials and Miners managed to advance. A total of 1.55 billion shares worth P7.87 billion changed hands as losers outpaced gainers 101 to 89 with 48 unchanged.

“Philippine shares slumped ahead of earnings season and further expected rate hikes from the Fed,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Assistant Research Manager Claire Alviar said “The local market closed in the red as investors await the US inflation rate. At home, investors were also pricing in the possible rate hike of the Bangko Sentral ng Pilipinas by 25 to 50 bps in their February meeting.“

She added that, a wider balance of trade in goods in the first 11 months of 2022 compared to the same period in 2021 weighed on sentiment.