Local stocks plunged on Wednesday, Feb. 21, snapping their five-day upward trajectory as the index continued to consolidate.
The 30-company Philippine Stock Exchange index dropped 1.25% or 109.05 points to close at 8,613.65, while the broader all-shares index also gave up 0.15% or 7.62 points on Wednesday.
“Mainly the red flags coming overseas continue to dampen most markets, including ours. We see more of the yields in the US bond market continue to trek higher, which could translate to immediate rate hikes in the Fed (United States Federal Reserve),” First Grade Finance, Inc. President and Managing Director Astrolito Romulo C. Del Castillo said in a phone interview on Wednesday.
Mr. Del Castillo added that oil prices, while dropping at the world market on Wednesday, seem to continue to inch higher.
“Again this is inflationary, not only in our own economy, but other economies as well,” he said.
On the domestic front, Mr. Del Castillo said no specific news is driving the market, which indicates that current movements remain to be a part of its consolidation.
Sought for comment, Eagle Equities, Inc. President Joseph Y. Roxas cited the market was still on consolidation, noting the lack of news that may have prompted the index’ sudden drop.
