Stocks retreat on US rate concerns

Share prices declined yesterday amid concerns over faster rate rises in the US, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) tumbled 117.09 points, or 1.36 percent, to finish at 8,475.29, while the broader All Shares gauge lost 35.79 points, or 0.69 percent, to end at 5,082.94.

The rest of the indexes were a mixed bag with the property, holding firms and services counters ending in the red.

Total value turnover reached P9.97 billion. Despite the index’s decline, market breadth was positive, 111 to 96 while 52 issues were left unchanged.

Commenting on yesterday’s trading session, Regina Capital’s Luis Limlingan said market investors took the cue from developments abroad.

“Philippine shares fell as investors who tuned in to Fed chair Jerome Powell’s semi-annual testimony read this as being modestly hawkish. Powell told lawmakers he has become more optimistic about the US economy this year and that the central bank remains on track to gradually lift short-term interest rates,” Limlingan said.

“My personal outlook for the economy has strengthened since December,” Powell said Tuesday in a testimony to the House Financial Services Committee, his first appear- ance on Capitol Hill since taking the central bank’s helm earlier this month.

Furthermore, Powell said recent signs of firming wage growth and inflation have made him more confident the economy is on the right path and that “further gradual increases in the federal-funds rate will best promote attainment” of the Fed’s objectives.”