Philippine stocks ended 2023 in the red, as the benchmark index lost 69.07 points, or 1.06 percent, on Friday to close at 6,450.04 on hawkish stance by the Bankgo Sentral ng Pilipinas.
The 30-company Philippine Stock Exchange Index (PSEi) also went down by 116.35 points, or 1.8 percent since the start of the year.
BSP Governor Eli Remolona earlier said the central bank was unlikely to cut rates on continued upward pressure on commodity prices.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the PSEi’s performance was below the hefty gains in the US and other major global markets.
Ricafort said despite the weakness in the local stock market on the last trading day, the PSEi still posted net gains since Dec. 14, 2023 triggered by near record highs in the US stock markets.
The US markets rallied for fifth straight trading day after the Federal Reserve signaled possible rate cuts in 2024.
Ricafort said the PSEi could rebound in 2024 and reflect the bullishness in the US and other global markets.
“For 2024, there is a good chance for start of the year gains amid possible tail-end of the Santa Clause rally on Wall Street,” Ricafort said.