MANILA – Concerns over future US interest rate increases weighed on Philippine assets Wednesday, sending both the stock market and the peso lower as investors sought safer positions.
The benchmark Philippine Stock Exchange index dropped 2.20 percent to close at 5,991.37, while the All Shares Index retreated 1.47 percent to 3,315.62.
Five of the six major sector indices ended lower. Services led the decline after shedding 4.22 percent, followed by Financials at 3.09 percent. Mining and Oil, Industrial, and Holding Firms also posted losses.
Property shares stood out as the sole bright spot, registering a modest 0.53-percent gain.
Total market turnover reached PHP10.32 billion, covering 8.7 billion shares traded. Market breadth remained negative, with declining stocks outnumbering advancing issues by 104 to 67. Sixty-three stocks were unchanged.
RCBC Chief Economist Michael Ricafort said investors continued to monitor signals from Federal Reserve officials, some of whom have indicated support for additional rate hikes to curb inflation.
These developments strengthened the US dollar and raised expectations that the Fed may implement a quarter-point increase later this year, with another possible adjustment in early 2027.
The prospect of tighter monetary conditions globally also contributed to subdued sentiment, as investors assessed how central banks, including the BSP, might respond.
In the currency market, the peso depreciated to 61.55 per US dollar from Tuesday’s close of 61.35.
The local unit opened weaker at 61.40 and moved between 61.35 and 61.63 throughout the session. Average trading settled at 61.55.
Foreign exchange transactions totaled USD1.76 billion, lower than the USD2.3 billion recorded in the previous trading day.
elamigo/xf
