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Stock market slips after Fed rate hike

 

THE stock market followed up Wednesday’s over 2-percent surge with a dip on Thursday, tracking a global slump triggered by the US Federal Reserve’s latest interest rate hike.

The bellwether Philippine Stock Exchange index (PSEi) slipped by 0.21 percent or 16.21 points to close at 7,563.41. The broader All Shares went the other way by inching up 0.05 percent or 2.42 points to finish at 4,544.13.

P2P Trade Online sales associate Gabriel Jose Perez said it was “another red day for the PSEi” as Wall Street tumbled overnight in reaction to the US central bank’s 25-basis point adjustment and pledge to take a cautious approach to further rate hikes next year.



In addition, “more net foreign selling dampened the general sentiment,” Perez added.

The Dow Jones Industrial Average dropped 1.5 percent, about 350 points, to 23,323.66 on Wednesday.

The broad-based S&P also shed 1.5 percent to 2,506.96, while the tech-rich Nasdaq Composite Index sank 2.3 percent to 6,636.83.

The declines left all three indices at fresh lows for 2018.

Regional markets followed suit on Thursday with Tokyo leading the rout with a 2.8 percent plunge as the Bank of Japan left ultra-low rates unchanged.

Shanghai lost 0.52 percent and Hong Kong and Seoul fell by just under 1 percent.

The equities slump spread to Europe, with London and Paris both shedding 1.4 percent and Frankfurt dipping 1.3 percent in early trade.

In Manila, sectoral results were mixed with the financials and services indexes the only gainers.

More than 875 million issues valued at P5.88 billion were traded.

Foreign investors bought P2.8 billion worth of shares and sold P3.3 billion for a net foreign selling position of P490.6 million.

Winners led losers, 117 to 78, while 42 issues were unchanged.

WITH A REPORT FROM AFP

 

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