Lo­cal shares fall sharply

Manila Bulletin - - Business - (JAL)

Lo­cal share prices fell across the board af­ter the US trea­sury yields rose to mul­ti­year highs due to a higher than ex­pected US re­tail sales re­port. The Philip­pine Stock Ex­change index dropped 175.44 points or 2.23 per­cent to 7,694.12 with all sec­toral in­dices in the red while vol­ume rose slightly to 1.32 bil­lion shares worth R7.16 bil­lion. Tim­son Se­cu­ri­ties’ Eq­uity Trader Jervin de Celis said 10-year yield hit its high­est level in 7 years at 3.1 per­cent while the 2-year trea­sury note yield rose to 2.59 per­cent (high­est in 10 years). This is due to the US re­tail sales re­port reach­ing 4.7 per­cent ver­sus the 4.1 per­cent fore­cast. “Since US re­tail sales is still go­ing up, we can as­sume that the US econ­omy is still pick­ing up (grow­ing) so this means in­fla­tion may go higher, if in­fla­tion goes higher, in­ter­est rates will go up,” he ex­plained.

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