Stocks plunge on concern over US monetary policy

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The local stock market fell sharply with the PSEi breaching the 7,000 level due to fears of monetary policy tightening in the US.

The main index plunged 183.23 points or 2.58 percent to close at 6,926.03 as share prices fell across the board led by the the Property sector. Volume rose to 920 million shares worth P6.41 billion as losers swamped gainers 139 to 33 with 52 unchanged.“Philippine shares fell with investors continuing to digest the Federal Reserve’s plans to tighten monetary policy,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “The March FOMC minutes revealed some of the key parameters of the balance sheet reduction process, including that the monthly cap would likely be set at $95 billion and that the caps would be phased in ‘over a period of three months or modestly longer.’” Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse plunged as the hawkish policy outlook of the Federal Reserve weighed on sentiment.”

 

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