The local stock market ended its four-day advance as investors tempered expectations on the US Federal Reserve’s next moves.
The 30-company Philippine Stock Exchange index dropped 58.62 points, for 0.94 percent, to close at 6,183.07, while the broader all-shares index declined 21.26 points to settle at 3,346.99.
China Bank Capital managing director Juan Paolo Colet said latest data from Europe, China and the United States dampened sentiment and contributed to selling pressures.
“The stronger-than-expected ISM service index for August, which reached 54.5, its highest since February 2023, signaled strong US economic activity and led some investors to scale back expectations of the path of the Federal Reserve’s interest rate cuts next year,” Colet said.
Philstocks Financial Inc. research and engagement officer Mikhail Plopenio said the local bourse also mirrored the drop in Asian markets caused by the rise in US Treasury yields and concerns over China.
“The market opened and stayed in the red territory for the whole session. Market participation was weak with net value turnover of P3.5 billion,” Plopenio said.