Philippine stocks fell Wednesday, ending two straight days of gains, on hawkish comments from the US Federal Reserve on inflation.
The 30-company Philippine Stock Exchange index shed 67.31 points, or 1.03 percent, to close at 6,489.35, while the broader all-shares index slipped by 28.20 points, or 0.80 percent, to end at 3,510.04.
The peso, however, climbed to finish at 58.32 against the US dollar Wednesday, up from 58.44 Tuesday.
US Fed Chairman Jerome Powell said during a Congressional testimony while inflation had displayed some “modest progress”, more “good data” were needed to boost confidence that inflation wads moving towards the central bank’s target of 2 percent.
Analysts said investors also took profits Wednesday after the stock index closed to its highest level in six weeks or since May 27, 2024.
“Moreover, although the Bangko Sentral ng Pilipinas’ rate cut in August was highly anticipated by investors, the possibility that the rate cut may lead to further weakness of the peso to below 59 against the dollar negatively affected sentiment,” Philstocks Financial Inc. research analyst Claire Alviar said.
All sectors ended in the red, led by industrial which declined 1.64 percent, followed by mining and oil which dropped 1.56 percent and property, which dipped 1.02 percent.
Value turnover reached P3.67 billion.
