The Philippine Stock Exchange (PSE) fell 2.34 percent on Thursday as the index dropped 147.76 points to close at 6,155.43.
“As most Asian markets fell due to inflation, rising interest rates and recession fears, PSE also followed suit,” Diversified Securities Inc. said in a statement. said trader Ancieto Pangan.
Meanwhile, Philstocks researcher Claire Alviar and Rizal Commercial Banking Corp. Chief Economist Michael Ricafort notes that there are signals that a larger BSP rate hike of +0.50 basis points is possible if economic data shows it is needed.
“BSP forecasts that the inflation rate in June of this year will settle in the range of 5.7-6.5%, which is above the 5.4% in May and the government’s target of 2-4%. in the coming months,” Alviar said in her analysis.
Meanwhile in the US, Ricafort and Regina Capital Development Corp. Managing Director Louis Limlingan noted that Cleveland Federal Reserve Bank (Fed) President Loretta Mester said she supported a +0.75 hike at the central bank’s upcoming July meeting if current economic conditions continue.
Global stock markets also tumbled after Fed Chairman Jerome Powell and his counterparts in Europe and the UK warned that inflation would be longer.
In terms of economic data, US personal income and spending data will be released, while Philippine bank lending data for May will be released at home.
Asian stocks closed mixed after the US economy contracted and China reported increased factory activity, according to The Associated Press’ Joe McDonald. Shanghai and Hong Kong have won, while Tokyo and Seoul have declined.
“Demand for equities may remain low for at least the next four to six months as interest rate hikes weigh on the US economy,” Stephen Innes of SPI Asset Management said in a report.
The trade ended with a total value of 6.44 billion pesos, with a total value of around $882.15 million.
Mining and oil were the biggest winners, gaining 0.90 percent, while services fell, losing 3.87 percent.
The depreciated securities outperformed the depreciated ones from 117 to 71, while 47 securities remained unchanged.