Philippine stocks, peso weaken after FOMC hints at 2023 rate hikes

Philippine stocks and the peso weakened on Thursday after the FOMC kept US interest rates steady but hinted at possible hikes starting in 2023.

The PSEi dropped by 1.23 percent, with property index leading declines among sectoral gauges.

Volume totaled nearly PHP114 billion, with decliners surpassing advancers.

Meanwhile, the peso weakened to 48.38 per dollar from its previous close of 48.09.

On Wednesday, both stocks and the peso moved sideways as investors awaited FOMC's policy meeting results.

The PSEi slipped by 0.05 percent while most sectoral counters lost ground except for Financials which gained.

Analysts expect the first hint about tapering in August or September, followed by a formal announcement in December and start of tapering early next year.