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| Property stocks tumble on expected interest rate hikes |
| Thursday, 17 July 2008 08:30 | |||
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"There's a great deal of caution in the market and investors are dumping almost everything. The selling pressure is more pronounced in the property sector partly because expectations of further increases in interest rates are gaining ground with oil prices hitting record highs day after day," said Rommel Macapagal, chairman of Westlink Global Equities. Philippine central bank governor Amando Tetangco Jr. said Wednesday inflation is expected to continue rising and peak in the third quarter, before slipping back to single-digit levels in 2009. "Consistent with its primary mandate to maintain price stability, the central bank remains committed to pursuing the necessary monetary action to address the risks to inflation and inflation expectations and ensure the achievement of (its) price stability objective," Tetangco said. High oil prices likely pushed domestic inflation to as high as 11.2 percent in June, the central bank has said. The actual figure will be announced on Friday. The central bank raised key interest rates by 25 basis points early last month, the first rise in nearly two years, as inflation soared to a nine-year high of 9.6 percent in May. Ayala Land Inc., the country's biggest home builder, was last down 3.5 percent to P8.40 after slumping by as much as 9.2 percent earlier in the session. Second-ranked Megaworld Corp. tumbled 10.2 percent to P1.06. Filinvest Land Inc. slipped 2.9 percent to 68 centavos while Robinsons Land Corp. slumped 10.5 percent to P6.00.
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