PSEi down on US Fed jitters
THE LOCAL stock barometer gave up early gains on Monday as investors braced for the start of the US Federal Reserve’s interest rate hike this month.
The Philippine Stock Exchange index closed 10.07 points or 0.14 percent lower at 6,911.86, reversing the upbeat mood in early trade.
“Despite the strong rally in the US, some investors are still concerned that the U.S. rate hike would trigger additional selling from the Philippines. The market also traded on thin volume reflecting a lack of investor conviction on the potential market direction for the remainder of the year,” said Michaelangelo Oyson, president of BPI Securities.
The US Federal Open Market Committee is set to meet in the middle of this month for its monetary policy setting, during which its key targeted rate is expected to be lifted for the first time in a decade.
The day’s decline was led by the financial counter which slipped by 1.13 percent while the industrial, services, mining/oil and property counters also faltered.
Value turnover was thin at P4.45 billion. There were 68 advancers which were overwhelmed by 112 decliners while 36 stocks were unchanged. There was P95 million in net foreign selling in the market.
RLC led the day’s decline with a 2.27-percent drop while BPI fell by 1.09 percent.
URC, ALI, AC, PLDT, EDC, AP and BDO also contributed to the day’s decline.
Newly listed Italpinas bucked the day’s downturn, rising by 17.22 percent. It was the fifth most actively traded stock in the market.
Megaworld also defied the day’s decline, rising by 1.1 percent while SM Prime, SMIC, JG Summit and Jollibee also firmed up.
The notable gainers outside of PSEi stocks included DoubleDragon, which gained 5.96 percent while Cebu Holdings rose by 1.98 percent. Like newly listed IDC, Cebu Holdings and DoubleDragon are betting on good growth prospects outside Metro Manila.
