The local stock market fell below the 6,800 support level on renewed concerns over inflation and interest rates.
The main index lost 36.89 points or 0.54 percent to close at 6,779.02 as the Property sector led the retreat although the Services and Mining counters managed to advance. Volume was low at 851 million shares worth P5.68 billion as losers trounced gainers 123 to 56 with 39 unchanged.
“Local equities closed in the red amid concerns of stubbornly high inflation metrics and Fed commentaries on the pacing of potential rate hikes,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Back home, the local bourse edged marginally lower as investors opted to cash in their portfolio gains ahead of the first MB meeting this year. Note that the BSP announced a widely expected 50bp interest rate adjustment, which effectively pushed the overnight RRP rate to 6 percent --the highest in almost 16 years.”
Philstocks Financial Assistant Research Manager Claire Alviar said that, “On the last trading day of the week, the local bourse droppedafter the Bangko Sentral ng Pilipinas (BSP) hiked interest rates by 50 bps. Also, negative sentiment from overseas affected the trading amid hawkish stance of the Federal Reserve.”
She noted that, “Stocks in Asia were also mostly in the red territory amid concerns over the possible rate hike of the Fed as they digested more economic data in the US. Moreover, the fall of Singapore’s non-oil domestic exports in January weighed on sentiment as this may bring worries over the condition of the global economy with Singapore often being seen as the bellwether for global growth.”