The PSEi continues its downward trend, this time falling below the 6400 level after higher US Treasury yields pulled down the Peso.
The main index shed 39.66 points or 0.62 percent to close at 6,371.75 as the Property sector led the retreat while Conglomerates managed to advance. Volume rose to 666 million shares worth P5.9 billion as losers swamped gainers 132 to 57 with 52 unchanged.
“Philippine shares saw another successive sell-off ahead of MSCI rebalance while US Treasury auction spurred a sell-off in bonds,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “US equities went on a plunge as higher bond yields fueled pessimism across equity markets. The odds for the Fed to raise rates currently are quite low, but not completely off the table. In any case, the Fed is said to need much evidence before becoming confident to start easing.”
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “The local market dropped following the rise in the US’ long term Treasury yields. The climb in yields resulted in the further decline of the Philippine peso against the US dollar which in turn weighed on the local bourse.”
“Also, inflation worries were heightened after the Bangko Sentral ng Pilipinas stated that there is still a high probability that inflation may breach the upper end of the 2 percent to 4 percent target range.“