The local stock market snapped its seven-day winning streak as it declined 1.5 percent on Thursday.
The peso held steady, closing at 58.94 to the dollar from 58.945 on Wednesday. The currency touched 59 anew, before hitting a low of 58.92, its opening rate.
Total volume amounted to $707.45.
The Philippine stock exchange index shed 92.32 points closing at 6,055.99.
The broader all shares shrunk 43.01 points or 1.32 percent.
“Philippine shares took a breather after successive sessions in the green as funds decided to trim positions following Wall Street’s struggles to extend its two-day winning streak amid a sharp rise in yields,” said Luis Limlingan, managing director at Regina Capital and Development Corp.
“Yesterday, the 10-year treasury note yield rose as much as 4.136 percent, its highest level since July 2008. Note that investors keep the treasury yields in check to catch any recession signals,” he added.
Majority of the counters were in red, with the exception only of the financials sector which grew 0.24 percent.
The industrials sector posted the biggest loss for the day with a decline of 2.59 percent.
Total value turnover was at P8.23 billion.
Decliners beat advancers, 107 to 58, while 51 stocks were unchanged.
The mood across Asian markets was sombre as the US Federal Reserve’s aggressive stance on rate hikes continued to strengthen the dollar, pressuring emerging market currencies.
Against a basket of currencies, the US dollar index pared some gains after an overnight surge of 0.9 percent. It was last down 0.13 percent at 112.83. The benchmark Treasury yield was at a 14-year high due to a sharp sell-off in government bonds, signaling persistent bearish sentiment.
Strength in the dollar and rising Treasury yields piled pressure on one of the highest-yielding notes in the emerging Asia market as Indonesia’s 10-year yield jumped sharply to a four-month high of 7.534 percent.
Sentiment was also weak in some Asian stock markets, given the current economic turmoil.
Philippine stocks lost the most among its peers, dropping 1.5 percent.— Reuters
