Stocks retreat on hawkish Fed, BSP rate signals

Elijah Felice Rosales – The Philippine Star March 8, 2024 | 12:00am The benchmark Philippine Stock Exchange index (PSEi) shaved off 41.20 points, or 0.6 percent, to finish at 6,837.34, while the broader All Shares index weakened by 19.70 points, or 0.55 percent, to settle at 3,567.89. Pixabay MANILA, Philippines — Stock investors were turned […]

Stocks retreat on hawkish Fed, BSP rate signals

Stocks retreat on hawkish Fed, BSP rate signals thumbnail

Elijah Felice Rosales – The Philippine Star

March 8, 2024 | 12:00am

The benchmark Philippine Stock Exchange index (PSEi) shaved off 41.20 points, or 0.6 percent, to finish at 6,837.34, while the broader All Shares index weakened by 19.70 points, or 0.55 percent, to settle at 3,567.89.

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MANILA, Philippines — Stock investors were turned off yesterday by policy signals from monetary authorities here and abroad,  dragging the local market to a third straight day of decline.

The benchmark Philippine Stock Exchange index (PSEi) shaved off 41.20 points, or 0.6 percent, to finish at 6,837.34, while the broader All Shares index weakened by 19.70 points, or 0.55 percent, to settle at 3,567.89.

Philstocks Financial Inc. research and client engagement officer Mikhail Plopenio said investors were discouraged by hints that it would take longer than expected before interest rates go down.

Bangko Sentral ng Pilipinas Governor Eli Remolona said it may be too early to cut rates without assurance that inflation will steady in the two percent to four percent range. US Federal Reserve Chairman Jerome Powell also issued a similar statement of keeping rates the same until inflation is tempered.

Regina Capital Development Corp. head of sales Luis Limlingan said investors priced in market cues here and overseas. The policy rate in the US remains at a 23-year high of 5.25 to 5.5 percent, and in the Philippines it stands at a near 17-year high 6.5 percent.

“Philippine shares continued to be sold down as investors digested Powell’s testimony before the House Financial Services Committee,” Limlingan said.

Based on PSEi data, P4.99 billion worth of shares changed hands throughout the day, with losers outnumbering gainers, 109 to 64, while 44 issues were unchanged.

All sectors in the PSEi except for services recorded declines, with property recording the largest loss of 2.41 percent.