PSEi down after Fed hints at possible interest rate hike

MANILA, Oct. 29 (PNA) — Local share prices extended slump on Thursday after the Federal Reserve signaled it may raise interest rates as early as December.

The barometer Philippine Stock Exchange index (PSEi) lost 100.01 points or 1.37 percent to 7,189.25 from previous day’s 7,289.26 finish.

“I think this is a knee jerk reaction to an impending Fed rate hike. Investors are more worried what will happen moving forward,” said First Grade Finance Managing Director Astro del Castillo in a phone interview.

But Del Castillo believed that the local market would recover especially in the second half of the year, optimistic about the Christmas holiday season and election-related spending.

Almost all counters lost significantly, led by property that plunged 2.32 percent.

A total of 1.26 billion shares changed hands with turnover of Php6.53 billion.

Decliners outnumbered advancers, 106 to 57, while 48 issues unchanged. (PNA)