Share prices declined Thursday as investors awaited the result of the central bank’s meeting.
The peso continued its slide.
The Philippine Stock Exchange index (PSEi) was down 102.77 points to 6,065.23, a 1.67 percent drop.
The broader all shares index was down 43.62 points to 3,284.73, a 1.31 percent drop.
Losers edged gainers 143 to 65 with 36 stocks unchanged. Trading turnover reached P5.42 billion.
The peso closed at 54.70 to the dollar, down from 54.47 on Wednesday.
The currency opened at 54.40 and hit a high of 54.35 and a low of 54.70. Trading turnover reached $1.06 billion.
Emerging Asian central banks have tried to keep pace with the recent tightening by the Fed but have fallen behind the curve as concerns around the economic pain associated with aggressive rate hikes abound.
Among other regional currencies, the South Korean won and the Thai baht slipped 0.3 percent and Malaysia’s ringgit was flat.
Globally, sentiments remained fragile after the Fed chairman Jerome Powell pledged full commitment to bring prices under control, despite the risks of an economic downturn.
Markets are pricing in another 75 basis point increase in July.
“The Asia session may continue to see growth worries being the key overhang for risk sentiments, driving a cautious mood overall,” Yeap Jun Rong, market strategist at IG, said in a note.
Equity markets wobbled, with shares in Philippines down 1.8 percent, Jakarta down 0.5 percent and Taiwan shares dipping 1.2 percent.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market’s drop was accentuated by a choppy trading as investors weighed the likelihood of a recession after Fed chair Jerome Powell acknowledged that achieving a soft landing without a recession has become ‘significantly more challenging’.
“Portfolio managers were also speculating how the BSP would react to inflationary pressures, as they (announced) they will be raising policy rates by 25 basis points (bps) to 2.5 percent right after market closed,” he said.
Most actively traded International Container Terminal Services Inc. was down P6.70 to P180. SM Prime Holdings Inc. was down P0.10 to P35. Ayala Land Inc. was down P0.85 to P25.65. PLDT Inc. was down P63 to P1,697. Bank of the Philippine Islands was down P4.50 to P86.50. Emperador Inc. was up P0.50 to P19.40. Converge ICT Solutions Inc. was up P0.50 to P19.40. BDO Unibank Inc. was down P3.50 to P116.50. D&L Industries Inc. was down P0.19 to P6.50. SM Investments Corp. was up P6.50 to P760.50.
