Local stocks pulled back on Wednesday after a two-day rally, hours before a key decision by the US Federal Reserve on whether or not it would slow down monetary stimulus.
The benchmark Philippine Stock Exchange index (PSEi) slid 0.16 percent, or 10.18 points, to 6,333.96 while the broader all-shares index dipped 0.12 percent, or 4.48 points, to 3,833.33.
Sub-sectors came in mixed, with financials leading gains by 0.95 percent, followed by mining and oil and the industrial subindex. Property firms declined 0.69 percent, the biggest among sub-indices, followed by holding firms and services.
“Investors are really at the sidelines or waiting to get clear direction on what kind of action the Fed will take in its meeting,” Astro del Castillo, managing director at First Grade Finance Inc., said in an interview. “Definitely, it will change the investment environment if indeed there is tapering.”
Trading volume was also lower on Wednesday, with 1.01 billion shares changing hands for P8.38 billion, data from the Philippine Stock Exchange showed. Advancers outnumbered decliners slightly, 70 to 68, while 42 companies closed unchanged.
Del Castillo noted that the PSEi still remained attractive at current levels.
“It’s a healthy consolidation,” he said.
He noted that investors could start accumulating stocks, given that the approaching fourth quarter is a historically strong period. Del Castillo favored conglomerates and retail stocks.
Leading the list of actively traded firms was Ayala Land Inc., which dipped 0.53 percent to P28.10 per share. This was followed by Alliance Global Group Inc. (-2.99 percent), Philippine Long Distance Telephone Co. (+0.07 percent), LT Group Inc. (-0.5 percent) and Metropolitan Bank and Trust (+1 percent ).—Miguel R.Camus