Share prices ended lower Tuesday on last-minute profit-taking.
The peso closed up.
The Philippine Stock Exchange index was down 43.14 points, a 0.65 percent drop to 6,556.20.
The broader all shares index was down 5.08 points or 0.14 percent to 3,527.17.
Gainers edged losers 117 to 80 with 40 stocks unchanged. Trading turnover reached P21.18 billion.
The peso closed at 55.33 to the dollar, up from 55.51 on Monday.
The currency opened at 55.35, hitting a high of 55.10 and a low of 55.36. Trading turnover reached $1.2 billion.
Asian currencies and stocks were mixed on Tuesday as fears persisted over prospects of further interest rate hikes by the US Federal Reserve, while the Thai baht was set to record its worst month in 23 years.
A series of upbeat economic data from the United States has reinforced the strength of the world’s largest economy and bolstered expectations that the Fed will become more aggressive in lifting interest rates.
Markets are now expecting a third 25-basis point hike this year from the Fed and see rates peaking at 5.4 percent by September.
Since January, most central banks in Southeast Asia have dialled back their policy tightening, with Malaysia’s central bank unexpectedly pausing, the Philippine central bank signaling one more rate hike this year, and the Bank of Thailand hinting at measured tightening ahead.
The dollar index, which measures the greenback against six peers, rose 0.2 percent to 104.81, eyeing a monthly gain of more than 2.5 percent, its first since September.
Claire Alviar, analyst at Philstocks Financial Inc., said the index’s drop was brought by last-minute profit taking, amid the MSCI rebalancing which will take effect tomorrow.
“During the early part of the trading session, the market was in the green following the positive sentiment in Asia as Hong Kong eased the restrictions further,” Alviar said.
Most actively traded Globe Telecom Inc. was down P60 to P1,775. ACEN Corp. was down P0.25 to P6.34. Manila Electric Co. was up P3 to P317.80. SM Prime Holdings Inc. was down P1.06 to P34.05. BDO Unibank Inc. was down P0.70 to P123.40. SM Investments Corp. was down P42.50 to P852. Ayala Land Inc. was steady at P28.50. Bank of the Philippine Islands was up P6.80 to P109.80. Ayala Corp. was down P23 to PP625. Metropolitan Bank and Trust Co. was down P1.70 to P58.20.
