By Leslie D. Venzon
MANILA, March 11 (PNA) –- The local stock market fell below 7,800 level on Wednesday, dragged down by Wall Street’s decline overnight, as investors were worried about rising interest rates and a strengthening dollar.
The benchmark Philippine Stock Exchange index (PSEi) lost 37.78 points to 7,790.70 from previous day’s 7,828.48 close.
Brokerage firm RCBC Securities Inc. said the local bourse retreated in knee-jerk reaction to the steep drop on Wall Street overnight, which was spooked by concern that the Federal Reserve might raise interest rates sooner-than-expected.
”Expectation of interest rate hike was being pushed to fourth quarter but now expectations are being adjusted to June,” noted DA Market Securities Inc.
It added that some analysts have begun predicting that earnings growth will be negative next quarter, partly because of the strength of the dollar.
All counters were in negative territory.
Volume of transactions reached two billion shares valued at Php8.61 billion.
Decliners dominated advancers, 130 to 45, while 47 issues unchanged.
The day’s top losers were led by 2Go Group Inc., Del Monte Pacific Limited, Swift Foods Inc., United Paragon Mining Corp. and Paxys Inc. (PNA)