PSEi plunges below 7,000 as Fed signals bolder rate hikes
The Philippine Stock Exchange Index (PSEi) fell below 7,000 anew as it tracked losses across the region and Wall Street after the powerful US Federal Reserve signaled further steps to aggressively tighten monetary policy amid inflationary pressures.
The benchmark index fell 2.58 percent, or 183.23 points, to 6,926.03 while the broader all-shares index lost 2.10 percent, or 79.26 points, to 3,701.23.
All Philippine Stock Exchange subsectors were down more than 2 percent while trading volume was up sharply relative to recent sessions.
Trading activity increases
“Philippine shares fell with investors continuing to digest the Federal Reserve’s plans to tighten monetary policy,” Luis Gerardo Limlingan, managing director at Regina Capital Development, said in a note to investors on Thursday.
Minutes from the latest US Fed meeting showed support for monthly balance sheet reductions to the tune of $95 billion and raising interest rates by half a percentage point.
Trading activity increased on Thursday with 920.28 million shares valued at P6.41 billion changing hands while foreigners offloaded stocks by a net amount of over P953.3 million. Decliners outnumbered advancers, 139 to 33, while 52 companies closed unchanged.
BDO Unibank Inc. was the most actively traded on Thursday as it shed 2.55 percent to P130 per share.
It was followed by SM Investments Corp., down 1.36 percent to P870; Converge ICT Solutions Inc., down 3.97 percent to P27.85; Ayala Land Inc., down 1.72 percent to P34.20; and International Container Terminal Services Inc., down 1.80 percent to P218 per share.
Heavy movers
Other heavy movers were SM Prime Holdings Inc., down 4.10 percent to P36.30; PLDT Inc., down 2.45 percent to P1,795; Universal Robina Corp., down 4.80 percent to P117; Bank of the Philippine Islands, down 1.63 percent to P96.50; and Ayala Corp., down 3.75 percent to P770 per share.
