Metro Manila (CNN Philippines, October 27) — Philippine stocks plunged to their lowest level in more than a year as investor confidence was pulled down following the central bank’s off-cycle rate hike and escalating tensions in the Middle East.
The benchmark Philippine Stock Exchange index (PSEi) further shed 56.50 points or .94% on closing to end below the 6,000 level at 5,961.99—also weaker than Thursday’s finish.
All the wider shares also ended in negative territory.
All sectors likewise suffered losses in Friday’s trading.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said the performance of the local market could be attributed to another looming rate increase in November amid persistent price pressures.
READ: BSP raises interest rate to 6.5% off-cycle to address rising prices
The analyst said “lingering uncertainties” given the ongoing war between Israel and the militant group Hamas have also weighed down investors’ mood.
“Such as the possible ground invasion of Gaza and risks that the war could spread/involve their respective allies, including major oil-producing countries in the Middle East,” he said in his comment.
Seedbox Securities, Inc. equity trader Jayniel Carl Manuel shared a similar sentiment, with the results blamed on the off-cycle rate hike announced Thursday, worsened by the military conflict in the Middle East.
These developments, he added, have “introduced significant uncertainty into the market.”
“These global conflicts have also played a role in the instability of oil prices, given the region’s importance in the energy markets,” Manuel said in a statement.
