The local market recovered most of the day’s steep losses as investors continue to fret over the possibility that the Fed will remain aggressive with rate hikes.
The main index lost 19.39 points or 0.29 percent to close at 6,589.88 with sectoral indices evenly divided. Volume rose to 798 million shares worth P8.77 billion as losers trounced gainers 119 to 57 with 45 unchanged.
“Philippine shares closed slightly in the red, weighed by financial stocks as investors grew increasingly concerned that higher interest rates would result in banks facing losses on loans due to borrower defaults,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He explained that, “The U.S. central bank uses higher interest rates to reduce inflation. But those higher rates increase consumer borrowing costs, which can slow the economy.”
“Traders are bracing for February jobs report, which is slated to be released on Friday. Economists polled by Dow Jones expect nonfarm payrolls to rise 225,000 in the month, which would mark a slowdown in growth from January’s unexpectedly large gain of 517,000,” Limlingan added.