Stocks stay in the red after Yellen speech
MANILA, Philippines – The local stock market lingered in the red yesterday as investors digested the impact of US Federal Reserve chair Janet Yellen’s statement hinting of a rate hike.
The benchmark Philippine Stock Exchange index (PSEi) went down 7.56 points or 0.10 percent to finish at 7,878.37 while the broader All Shares index declined 2.34 points or 0.05 percent to settle at 4,633.88.
Most of the counters likewise closed in negative territory, with mining and oil recording the biggest decline at 155.96 points or 1.45 percent. Other decliners were the industrial, holding firms and services counters.
On the other hand, financials and property sectors ended in the green.
Total value turnover reached P13.17 billion as decliners outnumbered advancing stocks, 100 to 82, while 52 stocks were left unchanged.
Analysts said the market is still digesting Yellen’s speech, who on Friday said there is a stronger case for a US rate hike given the improving economy.
Eric Luchangco, managing director, head of debt capital markets at BPI Capital, said while many in the US believe the Fed will increase rates in September, there is still no certainty the hike would indeed push through.
Other analysts added there is a good chance the rate hike will happen in December, rather than in September.
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