PSEi down on Fed statement

THE BENCHMARK Philippine Stock Exchange Index (PSEi) sank on Thursday as investors reacted negatively to the news that a rate hike by the powerful United States Federal Reserve could happen within the year.

The PSEi was down 1.37 percent, or 100.01 points, to 7,189.25 by the closing bell. The broader all shares index was also down 1.10 percent to 4,143.39.

“Some investors were disappointed by the statements of the US Fed,” Astro del Castillo, First Grade Finance Inc. managing director, said in an interview.

“This also triggered again a realignment of portfolios by fund managers,” he added. Still, Del Castillo described yesterday’s drop was a “knee-jerk” reaction.

“We can still bounce back from this sell-off,” he noted.

All subsectors dropped. Property fell the most, or by 2.32 percent, followed by mining and oil, down 1.66 percent, and industrial, down 1.49 percent.

A total of 1.26 billion shares valued at P6.5 billion yesterday changed hands. A total of 57 companies gained, 106 fell while 48 closed unchanged. Miguel Camus