Local shares fall sharply
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.