The local stock market fell further after the US Federal Reserve raised rates by 75 basis points as expected.
The main index fell 39.98 points or 0.63% to close at 6,301.71 as the property sector led the retreat while the Bank rose. Volume rose to 641 million shares worth 5.92 billion pula as losers beat winners 156-41 while 34 were unchanged.
“Philippine stocks struggled to find footing on a rock as traders weighed another sharp rate hike from the Fed,” said Regina Capital Development Corporation chief executive Luis Limlingan.
He added that “at its two-day FOMC meeting, the Fed announced a much-anticipated 75 basis point rate hike and pledged to maintain its aggressive stance by pushing interest rates to fight against inflation until it reaches a terminal rate of 4.6% in 2023.”
Philstocks Financial Assistant Research Manager, Claire Alviar, said: “The local stock market fell further as the Federal Reserve (Fed) raised interest rates by 75 basis points while the Bangko Sentral ng Pilipinas (BSP) raised interest rates. raised rates by 50 basis points to fight inflation.”
She noted that “the Fed’s decision has sent most equity markets into the red, especially with the expectation that they will remain aggressive for the rest of the year. At home, the 50 basis point BSP rate hike could help the peso, but high policy rates could temper demand.
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