PSEi down 0.67% on negative sentiments
THE Philippine Stock Exchange index (PSEi) dropped by 42.17 points, or 0.67 percent, on Friday to 6,259.54 as investors digested the policy rate hikes of the Federal Reserve (Fed) and the Bangko Sentral ng Pilipinas.
Also, the peso hitting a new record low of P58.50 against the greenback negatively impacted investor sentiment.
“Investors also took more gains on the last trading day of the week to avoid any uncertainties over the weekend as the market’s decline also followed the negative cues from the US markets overnight amid recession fears,” Claire Alviar, research associate at Philstocks Financial Inc., said.
“Market sentiment also was negative overall as some central banks around the world also raised key short-term interest rates, a day after the large 0.75 rate hike by the US central bank on Sept. 21, 2022, and after they signaled another 0.75 Fed rate hike on Nov. 2, 2022,” explained Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said that there are mounting recession fears in the US after the Fed delivered a jumbo rate hike and pledged more rate adjustments in the near future.
However, initial jobless claims in the US came in lower than expected at 213,000 in the week ending Sept. 17, 2022, as economists estimated 217,000 claims. This is a positive sign that a recession isn’t imminent.
Today, September 24, the markets will await the preliminary S&P Global US manufacturing and services PMI for September.
Friday’s market value turnover registered at P4.47 billion, with 491,330,180 in total volume and 54,011 trades transacted.
Sectors were mixed with industrials leading the gainers, up 0.45 percent, while holdings firms led the losers, shedding by 1.10 percent.
Advancers won against decliners, 95 to 92, while 42 securities remained unchanged.
Monde Nissin Corp. was the biggest gainer in the index, while JG Summit Holdings Inc. was at the bottom, losing 2.47 percent.