Share prices fell Thursday tracking overseas leads.
The peso closed lower.
The Philippine Stock Exchange index was down 49.11 points, a 0.78 percent drop to 6,219.16.
The broader All shares index was down 19.61 points or 0.55 percent to 3,365.79.
Losers edged gainers 117 to 50 with 53 stocks unchanged. Trading turnover reached P4.24 billion.
The peso closed at 56.87 to the dollar, down from 56.70 on Wednesday.
The currency opened at 56.87 and hit a high of 56.83 and a low of 56.90. Trading turnover reached $990.3 million.
Investors remained cautious on worries of growing geopolitical tension in the Middle East.
A sell-off in the US bond market continued into Asian hours with the yield on 10-year notes touching a 16-year high as investors assessed the Federal Reserve’s expected higher-for-longer interest rate stance.
However, a Reuters poll found that the Federal Reserve will keep its key interest rate on hold on Nov. 1 and may wait longer than previously thought before cutting it.
All eyes turn to Fed Chair Jerome Powell, who is taking part in a discussion on the economic outlook at the Economic Club of New York at 1600 GMT.
The poor market sentiment can also be attributed to uncertainty regarding the Israel-Hamas conflict, according to ANZ’s Goh.
Oil prices climbed about 2 percent to a two-week high overnight on concern about global supplies after Iran called for an oil embargo on Israel. Prices reversed gains on Thursday, after OPEC showed no sign of supporting Iran’s call.
Mikhail Philippine Plopenio, analyst at Philstocks Financial Inc., said investors heeded negative cues from Wall Street’s drop overnight amid the continuous climb of the US long-term treasury yields.
“Adding to the concerns was the International Monetary Fund’s projection that inflation would not fall within the government’s target range of 2 percent to 4 percent by the end of this year,” Plopenio said.
“Trading opened and stayed in the red territory for the whole session as the aforementioned headwinds weighed on sentiment. The ongoing tension in the Middle East kept many on the sidelines as well,” he added.
Most actively traded BDO Unibank Inc. was down P3.10 to P131.30. Jollibee Foods Corp. was down P3.20 to P220.80. SM Investments Corp. was up P7.50 to P820. Semirara Mining and Power Corp. was down P0.05 to P35.10. Macay Holdings Inc. was steady at P8.18. Converge ICT Solutions Inc. was down P0.38 to P9.60. Universal Robina Corp. was up P0.70 to P113.70. SM Prime Holdings Inc. was up P0.20 to P31.40. International Container Terminal Services Inc. was down P4.20 to P210. Puregold Price Club Inc. was down P0.20 to P29.25.
