Jittery stocks post hefty drop, just slightly above 7,000 mark

enablePagination: false
maxItemsPerPage: 10
maxPaginationLinks: 10

Metro Manila (CNN Philippines, June 21) — The stock market posted a big drop in yesterday's trade, hovering just above the 7,000 level as investors still factor in the impact of the central bank's interest rate hike.

The Philippine Stock Exchange closed Thursday at 7,098.15, lower by 163.47 points from Wednesday's 7,261.62. It went down by a hefty 2.25 percent.

The intraday low of 7,092.16 marked a fresh one-year low for the market, and analysts do not see any recovery happening soon.

All sub-indices were in the red.

Luis Limlingan, managing director of Regina Capital Development Corp., said the market is still feeling the impact of yesterday's interest rate hike.

READ: BSP raises interest rates anew to tame inflation

"The reaction to the needed Bangko Sentral ng Pilipinas (BSP) rate hike was still not taken positively as the decision came behind the curve as indicated by the continued meltdown of the PSEi well within the bear market territory," Limlingan said in a message to reporters.

He said he expects the BSP to carry out another rate hike in the September 27 meeting.

Limlingan noted that bearish sentiments on the stock market were not isolated to the country. Markets are spooked by the U.S. trade war with China and Europe and the Brexit bill passing the British parliament.

Jonathan Ravelas, chief market strategist of BDO Unionbank, said he does not expect markets to recover soon.

"Market investors are now waiting for a dead cat bounce as market levels register cheaper valuations. But the cat is still falling," Ravelas said on Twitter.

Meanwhile, the peso closed today at ₱53.46 versus the dollar, recovering a mere 2 centavos from yesterday.