Share prices ended lower Thursday on profit taking.
The peso closed up.
The Philippine Stock Exchange index (PSEi) was down 48.27 points, a 0.73 percent drop to 6,566.80.
The broader all shares was down 18.68 points or 0.54 percent to 3,430.80.
Losers edged gainers 101 to 71 with 45 stocks unchanged.
Trading turnover reached P7.27 billion.
The peso closed at 55.685 to the dollar, up from 55.745 on Wednesday.
The currency opened at 55.73 and hit a high of 55.61 and a low of 55.84. Trading turnover reached $1.06 billion.
Most Asian emerging currencies weakened against the US dollar on Thursday as the Federal Reserve warned of prolonged rate hikes, Reuters reported.
The Bangko Sentral ng Pilipinas (BSP) raised its benchmark interest rate for the seventh time this year by 50 basis points (bps) to 5.50 percent and is seen to lean towards additional interest rate hikes by a smaller 25 bps in February and March next year, according to Raul Ruiz, president at RCBC Securities.
Ruiz said a narrowing trade deficit and lower crude oil prices would cushion a more stable peso.
“The peso will likely trade sideways between the 55 to 56 band until the end of this year, supported by the seasonally strong (dollar) inflows in the fourth quarter and BSP’s 50 bps policy rate hike,” Ruiz said.
The BSP will match any action by the Fed next year, given the upside risks to inflation, said Nicholas Mapa, a senior economist at ING.
Other regional currencies remained subdued on strength in the US dollar as the Fed forecast more interest rate hikes next year and kept a hawkish tone, after delivering a widely expected half-a-percentage point rise in borrowing costs to curb inflation.
Jose Vistan, AB Capital Securities Corp. head of research, said the market’s pullback was in reaction to the US Fed’s decision to remain firm on its hawkish stance on monetary policy.
“Risk assets reacted to warning that although inflation may have peaked, we are still a long way to go from achieving the Fed terminal inflation rate target of 2 percent,” Vistan said.
Most actively traded BDO Unibank Inc. was down P3.10 to P110.50. PLDT Inc. was down P69 to P1,541. International Container Terminal Services Inc. was down P3 to P204. Ayala Land Inc. was down P0.50 to P29. ACEN Corp. was up P0.04 to P7.50. SM Investments Corp. was up P2 to P930. GT Capital Holdings Inc. was up P2 to P422. Jollibee Foods Corp. was down P0.80 to 233. SM Prime Holdings Inc. was down P0.35 to P34.70. Metro Pacific Holdings Inc. was up P0.06 to P3.45.
