Share prices ended lower Thursday, tracking overseas leads.
The peso closed up.
The Philippine Stock Exchange index (PSEi) was down 19.3 points, a 0.3 percent drop to 6,404.91.
The broader All Shares index was down 9.12 points or 0.27 percent to 3,417.60.
Losers edged gainers 106 to 73 with 47 stocks unchanged. Trading turnover reached P5.45 billion.
The peso closed at 55.62 to the dollar, up from 55.645 on Wednesday.
The currency opened at 55.57 and hit a high of 55.53 and a low of 55.66. Trading turnover amounted to $767.4 million.
Most Asian currencies were tentative, with some losing ground on Thursday after the US Federal Reserve Chair stuck to a hawkish tone and as the focus turned to rate decisions from Indonesia and Philippines later in the day.
Fed Chair Jerome Powell in his remarks to lawmakers in Washington said the outlook for two further 25 basis point rate increases are “a pretty good guess” of where the central bank is heading if the economy continues in its current direction.
“Most people see his (Powell’s) testimony as just trying to correct the no-hike in the last FOMC meeting by trying to kind of make up for that in a way,” said Sunil Kalra, portfolio manager at LC Beacon Global Fund, Singapore.
Around 72 percent of investors have priced in a quarter-point Fed rate hike in July, with rate cuts seen at the end of the year or early next year, according to CME Fedwatch tool.
The US dollar index, which measures it against a basket of currencies, was broadly flat to trade at 102.0.
The day ahead will keep traders focused on key interest rate decisions from Philippines and Indonesia, with strong expectations for both central banks to keep rates on hold, according to separate Reuters polls.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said the market suffered from negative spillovers from Wall Street overnight.
“This came following Federal Reserve Chair Jerome Powell’s remarks in his testimony to the US Congress where he signaled more possible rate hikes. Investors seemed to have been weighed by the hawkish statements from the Federal Reserve despite the anticipated rate hike pause from the Bangko Sentral ng Pilipinas,” he said.
“Moreover, the decline in Universal Robina Corp. and Monde Nissin Corp. amid the reported proposed excise taxes on junk foods and sweetened beverages dragged the index down,” he added.
Most actively traded Ayala Land Inc. was up P0.40 to P23.70. Sm Investments Corp. was down P14 to P910. Bright Kindle Resources and Investments Inc. was up P0.17 to P1.54. BDO Unibank Inc. was down P0.20 to P140.80. PLDT Inc. was up P29 to P1,359. Prime Media Holdings Inc. was up P0.29 to P2.36. Ayala Corp. was up P9 to P624. Metro Pacific Investments Corp. was up P0.09 to P4.55. Bank of the Philippine Islands was down P0.50 to P106.50. Universal Robina Corp. was down P7 to P129.80.
