The local stock market fell at the start of the week as potential interest rate hikes continue to drag out investors’ sentiments.
The main index dropped by 54.46 points or 0.86 percent closing at 6,088.44, with all sectoral indices in red, notably the Mining and Oil and Industrial sectors taking the most hits.
Total volume of shares traded was at 551 million valued at P3.3 billion as losers trump gainers 123 to 50 with 55 unchanged.
For Regina Capital Development Corporation Managing Director Luis Limlingan, “Philippine shares started the week in the red as investors' sentiment was tainted by the surge in the US 10-year Treasury yield, which raised widespread concerns regarding the economic outlook.”
“In the Philippines, a key data point to watch is the Budget Balance, which is anticipated to be -P170 billion, with the release scheduled for Wednesday,” he added.
Meanwhile, Philstocks Financial Assistant Research Manager Claire Alviar said the “local bourse extended its losses as investors remained concerned about the escalating conflict between Israel and Hamas.”
“In addition, the possibility of prolonged high-interest rates, both domestically and in the US, further weighed on the sentiment,” she added.
She also noted that among index members, “San Miguel Corporation [PSE: SMC] was at the top, increasing by 2.53 percent amid its confirmation of the agreement regarding the construction and operation of the Pangasinan Link Expressway Project; and DMCI Holdings, Inc. [PSE: DMC] dropped the most by 6.43 percent as investors sold shares on its ex-dividend date.”