PSEi drops as US hints at earlier rate hikes

The Philippine Stock Exchange Index (PSEi) closed lower on Friday, dropping 36.54 points or 0.53 percent to end at 6,851.38, as investors anticipated an earlier-than-expected US Federal Reserve rate hike.

On Thursday, the PSEi fell by 85.43 points or 1.23 percent to close at 6,887.92 due to concerns over potential US interest rate increases and technical overbought conditions.

Foreign investors sold off local stocks heavily on Thursday amid indications that the Fed may raise rates twice in 2023, leading some analysts to suggest that the PSEi could face challenges breaking through the 7,000 to 7,150 range.