Share prices ended lower Monday on inflation worries as investors braced for the expected rate hikes in the US when the Federal Bank meet this week.
The Philippine Stock Exchange index (PSEi) was down 295.24 points to 6,816.95, a 4.15 percent drop.
The broader all shares index was down 126.87 points to 3,638.49, a 3.37 percent drop.
Losers edged gainers 190 to 34 with 28 stocks unchanged. Trading turnover reached P8.91 billion.
The peso closed at 52.475 to the dollar, down from 52.29 on Friday, a three-year low.
The currency opened at 52.32, an intraday high and hit a low of 52.49. Trading turnover reached $806.55 million.
Most regional currencies retreated further on Monday, as the Russia-Ukraine war continued to rage and investors braced for US and UK interest rate hikes to counter surging inflation, Reuters reported.
Many regional currencies continued to be under pressure with oil prices still trading well over the $100 per barrel mark even after retreating from higher peaks scaled last week.
“$112 per barrel of Brent crude is still not a happy sight in the Asean region. The signs of fiscal distress is clearly evident in the region”, analysts at Mizuho Bank said, adding that several countries in the region will likely have to implement measures to cushion the hike in consumer fuel prices and further hurt their currencies.
Markets await the US Federal Reserve’s interest rate decision due late on Wednesday, following recent data showing inflation in the country grew at its fastest pace in four decades.
While markets have largely priced in a 25 basis points hike to the federal funds rate, commentary with regard to inflation and future rate hikes will be closely watched.
“Philippine shares closed in the red as investors weighed remarks from Russian President Vladimir Putin about diplomatic discussions with Ukraine against a weaker-than-expected print on US consumer sentiment,” said Luis Limlingan, managing director at Regina Capital and Development Corp.
Japhet Tantiangco, analyst at Philstocks Financial Inc. said inflation worries remain elevated amid the projected fuel price hike to be implemented this Tuesday.
“Meanwhile, the lockdowns imposed in China amid a new wave of COVID-19 infections pose downside risk to the global economy,” Tantiangco said.
Most actively traded Ayala Corp. was down P41 to P750.50. Ayala Land Inc. was down P2.80 to P34.05. SM Prime Holdings Inc. was down P0.55 to P37.45. SM Investments Corp. was down P29 to P880. International Container Terminal Services Inc. was down P14 to P212. BDO Unibank Inc. was down P2.90 to P124.10. PLDT Inc. was down P115 to P1,715.
Jollibee Foods Corp. was down P11.60 to P218.40. Universal Robina Corp. was down P5.40 to P102.30. Semirara Mining and Power Corp. was down P2.10 to P28.90.
