PHILIPPINE SHARES dropped on Wednesday to track Wall Street’s decline before the US Federal Reserve’s latest policy decision.
The Philippine Stock Exchange index (PSEi) fell by 6.93 points or 0.11% to end at 6,041.04 on Wednesday, while the broader all shares index went down by 2.64 points or 0.08% to close at 3,271.66.
“Philippine shares edged lower as Wall Street geared up for the latest interest rate decision and economic update from the Fed,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“The Fed is widely expected to hold rates steady, but investors will be paying close attention to the summary of economic projections and the press conference of Fed Chair Jerome Powell for clues about what might happen in the months ahead,” Mr. Limlingan added.
Philstocks Financial, Inc. Research Analyst Claire T. Alviar likewise said in a Viber message that shares dropped in anticipation of the Fed’s decision.
“While the market mostly traded in the red and briefly dipped below the psychological level of 6,000, bargain hunters attempted to rally, but were unable to sustain the momentum, ultimately yielding to selling pressure. Foreigners continued to be net sellers, resulting in a net outflow of P1.02 billion,” Ms. Alviar said.
The Fed was set to announce its policy decision overnight after a two-day meeting.
Markets expect the US central bank to keep rates unchanged after it hiked its target rate by 25 basis points (bps) to the 5.25% to 5.5% range at its July meeting.
The Fed has hiked rates by a total of 525 bps since it began its tightening cycle in March 2022.
Wall Street lost ground on Tuesday, with risk-off sentiment weighing as the US Federal Reserve convened for its much-anticipated two-day monetary policy meeting, Reuters reported.
The Dow Jones Industrial Average fell 106.57 points or 0.31% to 34,517.73; the S&P 500 lost 9.58 points or 0.22% to 4,443.95; and the Nasdaq Composite dropped 32.05 points or 0.23% to 13,678.19.
Back home, the majority of sectoral indices rose on Wednesday. Mining and oil went up by 129.24 points or 1.25% to 10,454.79; services climbed by 8.35 points or 0.56% to 1,488.20; property increased by 12.06 points or 0.49% to 2,470.07; and industrials rose by 8.55 points or 0.09% to 8,701.17.
Meanwhile, holding firms dropped by 33.90 points or 0.58% to 5,747.78 and financials went down by 7.29 points or 0.41% to 1,760.17.
Value turnover rose to P5.26 billion on Wednesday with 542.64 million shares changing hands from the P3.65 billion with 596.63 billion issues on Tuesday.
Advancers outnumbered decliners, 100 versus 79, while 43 names closed unchanged.
Net foreign selling went up to P1.02 billion on Wednesday from P566.33 million on Tuesday. — SJT with Reuters
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