PH stocks plunge lowest in over a year
The local stock benchmark fell below 6,100 to its lowest level in more than a year as investors worry over interest rates amid rising inflation.
The main index plunged 76.60 points or 1.25 percent to close at 6,047.97 with the rate-sensitive Property sector leading the retreat of all counters. Volume remained low at 596 million shares worth P3.65 billion as losers beat gainers 128 to 67 with 43 unchanged.
“Philippine investors sold and kept to cash as investors readied for the upcoming two-day policy meeting of the Fed,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He noted that, “back home, local traders await the results from upcoming policy meetings. The Fed will hold its policy meeting from Sep 19-20, while the Monetary Board will follow on Sept. 21.”
Philstocks Financial Assistant Research Manager Claire Alviar said, “the main index plunged, reaching a new low of 6,047.97 for the year, as foreign investors continued to exit the market, posting a net selling of P566.33 million. This month, net foreign selling totaled nearly P4.7 billion, with not a single day witnessing net foreign buying.”
China Bank Capital Corporation Managing Director Juan Paolo Colet said, “the index fell to its lowest close in more than a year on concerns that rising oil prices and other inflationary pressures will force the BSP and Federal Reserve to keep policy rates elevated for longer.”
“Both central banks are widely expected to hold rates steady during their meetings this week, but growing uncertainty about the path of interest rates over the next several months has soured investor sentiment on local equities,” he added.