THE stock market snapped a five-day winning streak on Wednesday with analysts noting investor concerns over the possibility of interest rate hikes.
Following gains since Tuesday last week and a holiday break on Friday, the benchmark Philippine Stock Exchange index (PSEi) lost 1.25 percent or 109.05 points to close at 8,613.65. The broader All Shares shed 0.15 percent or 7.62 points to end at 5,122.17.
“Most investors are still risk-averse. Concerns [are]emanating from overseas such as higher bond yields … signaling more rate hikes in the future,” First Grade Finance, Inc. Managing Director Astro del Castillo said.
“Investors continue to flock to the bond market from the equity market given the higher bond yields,” he added.
Del Castillo said local shares prices will remain volatile “but this is healthy for the market.”
In a separate comment, a Regina Capital Development Corp. analyst said Philippine markets succumbed, after staying above the 8,700 level since Monday, in line with US markets declines.
Papa Securities Corp. deputy research head Arabelle Maghirang echoed the view.
The Dow Jones fell 1.01 percent, the S&P 500 dropped 0.58 percent, and the tech-heavy Nasdaq dipped 0.07 percent on Tuesday.
Locally, only the services and mining and oil sectors posted gains, up by 0.41 percent and 2.64 percent, respectively.
Volume turnover reached 1.9 billion, valued P9.5 billion.
Losers led winners, 128 to 82, while 46 issues were unchanged.
(Editor’s Note: The original headline mistakenly set the stock market level at 6,000.)