The local stock barometer gave up early gains Monday as investors braced for the start of the US Federal Reserve’s interest rate increase within this month.
The Philippine Stock Exchange index (PSEi) 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 [Fed] 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 increased 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. Doris Dumlao-Abadilla