Philippine shares fall below 6,500 mark; Fed rate cut concerns persist

Local shares continued their decline on Thursday, falling below the 6,500 mark for the second consecutive day as investors reacted to the Federal Reserve's projection of fewer rate cuts next year due to persistently high inflation in the United States.

The benchmark Philippine Stock Exchange Index (PSEi) dropped by 1.14 percent to 6,395.60 points, its lowest since July, while the All Shares counter fell by 0.76 percent to 3,671.75.

Regina Capital Development Corp managing director Luis Limlingan attributed the market's decline to concerns over potential interest rate decisions and policy outlooks from central banks, as well as local investors attempting to clean positions before year-end.

Trade volume increased to PHP9.84 billion compared to Wednesday, with decliners outnumbering advancers 126 to 72.

Foreign outflows totaled P997.59 million as traders priced in the Federal Reserve's projection of fewer rate cuts next year due to persistently high inflation in the United States.

The Philippine peso returned to a 59-to-a-dollar level on Thursday, closing at 59 against the US dollar after trading between 58.98 and 59 earlier in the day.