China’s lockdown, rate hike fears worry market

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Investors at the Philippine Stock Exchange are expected to opt for range-bound trading as inflation fears will continue to weigh down investor sentiments. Read more here:

Analysts said the continued increase in oil prices and the supply chain disruptions caused by China’s COVID-19 lockdown are affecting the prices of commodities that will lead to higher inflation and eventually increased interest rates.

Luis Limlingan, head of sales of Regina Capital Development Corp., said investors are also concerned the lockdown in China could temper profitability of some of listed companies.Meanwhile, investors will be monitoring the release of first-quarter earnings report of listed companies as they could provide a clue and outlook on how firms will perform this year.

The industrial index declined 2.2 percent; property fell 0.3 percent; and holding firms dropped 0.2 percent. Meanwhile, global stock markets dropped sharply Friday as the latest hawkish commentary from the Federal Reserve sent investors fleeing equities on worries over higher interest rates.

 

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