The local stock market continued to weaken as investors wait for the Federal Reserve’s meeting on Thursday.
The main index dropped 34.90 points or 0.52 percent to close at 6,744.12 as the Mining and Oil sector led all indices lower. Volume shrank to 483 million shares worth P3.3 billion as losers beat gainers 115 to 72 with 47 unchanged.
“To start the week, Philippine shares slipped ahead of the upcoming Fed meeting on Feb. 23 and as US inflation weighed on investors sentiment,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Market participants are overall still wary on Fed's rate adjustments to tame inflation.”
Philstocks Financial Assistant Research Manager Claire Alviar said “This Monday, the local bourse lost 34.90 points as investors remained cautious amid the hawkish stance of the Bangko Sentral ng Pilipinas (BSP) and Federal Reserve.”
She noted that, “Both central banks are still seeing a possibility of a rate hike this year to manage the elevated inflation. For the BSP, a rate hike of 25bps to 50bps more is seen.”