The Philippine stock market started the week in the red amid jitters over the collapse of Silicon Valley Bank, which marked the biggest US bank failure since the 2008 financial crisis.

The benchmark Philippine Stock Exchange Composite index (PSEi) closed at 6,544.45, down by 45.43 points or 0.69 percent.

Likewise, the broader All Shares index slipped to 3,518.83, down by 21.56 points or 0.61 percent.

Philippine shares slid following the US market's performance last Friday as anxiety prevailed due to the closure of Silicon Valley Bank, said Luis Limlingan of Regina Capital.

The sectoral gauges were mixed but biased toward the negative zone. Only the holding firms and mining and oil ended in positive territory. The rest finished in negative territory.

Total value turnover reached P25.52 billion. Market breadth was negative, 124 to 58 while 47 issues were unchanged.

Meanwhile, Asian shares were mixed, shaken by a Wall Street tumble that set off worries the biggest United States bank failure in nearly 15 years might have ripple effects around the world.

But the falls were relatively subdued because of reassurances from US officials that financial shocks would be mitigated, sending US futures higher.

Before trading began in Asia, the US Treasury Department, Federal Reserve and FDIC said Sunday that all Silicon Valley Bank clients will be protected and have access to their funds and announced steps designed to protect the bank's customers and prevent more bank runs.

Regulators closed Silicon Valley Bank on Friday amid a run on the bankl. They also announced Sunday that New York-based Signature Bank was being seized after it became the third-largest bank failure in US history.

Worries grew recently that interest rates are set to go higher than expected after the Fed Reserve said it could reaccelerate the size of its rate hikes.

The Fed is focusing on wage growth in particular in its fight against inflation. It worries too-high gains could cause a vicious cycle that worsens inflation.

 

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