Stocks sink as US treasury yields rise
The local stock market sank further as investors brace for higher US treasury yields.
The main index dipped by 49.11 points or 0.78 percent closing at 6,219.16 with all sectoral indices in red except for the Property sector.
Total volume of shares traded amounted to 575 million valued at P4.2 billion as losers outperform gainers 117 to 50 with 53 unchanged.
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said the local market dropped as investors “took negative cues from Wall Street overnight amid the continuous climb of the United States (US)’ long-term treasury yields.”
“Adding to the concerns was the International Monetary Fund’s projection that inflation would not fall within the government’s target range of two to four percent by the end of this year,” he added.
Plopenio noted that the ongoing tension in the Middle East also “kept many investors on the sidelines as well.”
Regina Capital Development Corporation Managing Director Luis Limlingan also cited the local market’s performance due to “rising US Treasury yields,” and added that investors also “braced for more third quarter earnings,” noting Bank of the Philippines (BPI)’s “better-than-expected profitability.”
“The yield on the U.S. 10-year Treasury topped 4.9 percent, touching its highest level in 16 years,” he said.
Limlingan noted that US interest rates will be “back in focus as traders look ahead to a key speech from Federal Reserve Chair Jerome Powell for clues on where rate policy is heading.”