Stocks drop further as Fed keeps rates, low Philippine GDP growth


The local stock market dropped further after the US Federal Reserve decided not to cut interest rates due to inflation.

The main index lost 45.81 points or 0.74 percent to close at 6,107.66 with Miners and Conglomerates seeing the biggest losses while Property and Services managed to advance. Volume dipped to 1.11 billion shares worth P4.95 billion as losers beat gainers 118 to 76 with 36 unchanged.

“Philippines shares tumbled after the Federal Reserve kept interest rates unchanged in its first policy decision of the year,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that “the Fed maintained the federal funds rate at 4.25 percent to 4.50 percent , with its post-meeting statement signaling a cautious stance on persistent inflation—offering investors insight into the rationale behind the rate pause.”

Philstocks Financial Research Manager Japhet Tantiangco said “the local market extended its drop to its fourth straight day as the Philippines’ 2024 economic growth disappointed investors, coming in at 5.6 percent which was below the government’s six to seven percent target."

“Adding to investors’ dismay was the Federal Reserve’s decision to keep their policy rates unchanged in their latest meeting,” he added.