Lackluster trading seen

ANOTHER week of cautious trading is seen at the local stock market this week as the US Federal Reserve meets to sanction what is widely expected to be the first interest rate increase in a decade.

Last week, the main-share Philippine Stock Exchange index (PSEi) lost 2.7 percent to close on Friday at 6,735.01 ahead of the US Federal Reserve Open Market Committee meeting on Dec. 15 to 16.

“The market will be hostage to the US Fed action,” said Astro del Castillo, managing director at fund management firm First Grade Finance. “All eyes will be on the US Fed.”

For the rest of the year, Del Castillo said he was not too optimistic that there would be the traditional yearend or so-called “Santa Claus” rally. Doris Dumlao-Abadilla