PHILIPPINE shares fell on Thursday, in line with global sentiment toward the Federal Reserve decision to raise its key rates by 25 basis points and hints of more hikes next year as the US economy gains further growth momentum.
The Philippine Stock Exchange index (PSEi) fell by 1.05 percent or 73.03 points to close at 6,855.31, while the All Shares dropped 0.95 percent or 40.02 points to 4,161.35.
Although the 25-basis point US rate hike fell within consensus forecasts, global markets weakened upon learning of Fed Chair Janet Yellen’s stance for a faster paced rate increases next year under the Donald Trump administration.
“Philippine stocks declined as US stocks retreated after the Fed indicated a faster paced rate increases for 2017,” Luis Limlingan, managing director of Regina Capital Development Corp., said.
However, Aniceto K. Pangan, equities trader at Diversified Securities Inc., said the Philippines will be able to withstand the rate hikes compared to other markets on the back of a robust domestic economy, which remains to be one of the brightest spots in the world.
“The Philippines should not be that much affected given our current economic fundamentals are quite strong,” Pangan said.
The sectoral counters were all in the red, with the Property index declining the steepest by 2.29 percent, followed by Industrials’ 1.21 percent.
Newly listed Shakey’s Pizza Asia Ventures Inc. (PIZZA) wowed the market by going against the global downtrend. PIZZA surged by 7.46 percent or 84 centavos to close at P12.10, compared with its offer price of P11.26.
Ayala Corp., Bank of the Philippine Islands, and SM Investments Corp. also led the gainers, while the losers included BDO Unibank Inc., SM Prime Holdings Inc., Universal Robina Corp. and Ayala Land Inc.
More than 1.42 billion shares worth P8.7 billion were traded. Decliners outpaced advancers, 117 versus 66, while 40 were unchanged.
On Wednesday, the PSEi advanced by 0.68 percent or 47.43 points to 6,928.34, while the All Shares climbed by 0.68 percent or 28.72 points to 4,201.37.