Local stocks fell Thursday on hawkish statements from the United States Federal Reserve and ahead of the decision of the Bangko Sentra ng Pilipinas to keep interest rates steady.
The bellwether Philippine Stock Exchange index dropped 45.12 points, or 0.70 percent, to close at 6,364.97, while the broader all-shares index declined 16.61 points to settle at 3,409.80.
Michael Ricafort, RCBC chief economist, said the market declined after the hawkish signals from latest Fed minutes and stronger US industrial production data that could support a Fed rate hike in the future.
Philstocks Financial Inc. research and engagement officer Mikhail Plopenio said the Bankgo Sentral ng Pilipinas’ move to adjust its full-year inflation forecast and mounting growth projection downgrades for the Philippines also affected the investor sentiment.
“Many are seen to stay in the sidelines as worries regarding the global and local economy are still present,” Plopenio said.