PHILIPPINE STOCKS fell for the second consecutive session on Wednesday to track Wall Street’s decline as new US data raised inflation concerns, which could affect the Federal Reserve’s rate-cut cycle.
The Philippine Stock Exchange index went down by 0.74% or 48.66 points to close at 6,496.72 on Wednesday, while the broader all shares index slipped by 0.02% or 0.84 point to 3,749.85.
“The local market extended its decline this Wednesday amid the negative spillovers from Wall Street as US Treasury yields rose,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“Philippine shares continued to slide following the sentiment in the overseas equities market… US stocks fell on Tuesday as strong economic data raised doubts about potential Federal Reserve rate cuts, driving Treasury yields higher and dragging tech stocks lower,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
US stocks tumbled on Tuesday after a batch of upbeat economic data raised concerns that an inflation rebound could slow down the Federal Reserve’s pace of monetary policy easing, Reuters reported.
The Dow Jones Industrial Average fell 178.20 points or 0.42% to 42,528.36; the S&P 500 lost 66.35 points or 1.11% to 5,909.03; and the Nasdaq Composite lost 375.30 points or 1.89% to 19,489.68.
Stocks gave up early gains after a Labor Department report showed job openings unexpectedly increased in November, while a separate report said services sector activity accelerated in December with a measure tracking input prices surging to a near two-year high.
Signs of continued resilience in the economy have pushed back expectations on when the central bank can deliver its first interest rate reduction this year. Traders now see the next cut more likely in June and the Fed staying on hold for the rest of 2025, according to the CME Group’s FedWatch tool.
“Investors also dealt with the further rise of our National Government’s outstanding debt,” Mr. Tantiangco added. The Philippine government’s outstanding debt rose by 0.4% or P70.7 billion to a record P16.09 trillion as of end-November from P16.02 trillion as of end-October, Bureau of the Treasury data showed. Debt climbed by 10.9% year on year.
Almost all sectoral indices ended lower on Wednesday. Holding firms dropped by 1.31% or 73.85 points to 5,546.25; property went down by 0.77% or 18.35 points to 2,341.65; services retreated by 0.57% or 12.30 points to 2,110.89; industrials decreased by 0.46% or 42.76 points to 9,212.40; and financials declined by 0.36% or 8 points to 2,200.71. Meanwhile, mining and oil rose by 1.53% or 118.97 points to 7,850.38.
Value turnover went up to P4.69 billion on Wednesday with 921.83 million issues traded from P4.51 billion with 1.51 billion shares exchanged on Tuesday.
Advancers narrowly beat decliners, 110 versus 106, while 44 names were unchanged.
Net foreign selling dropped to P501.53 million on Wednesday from P894.32 million on Tuesday. — Revin Mikhael D. Ochave with Reuters
