PSEi weakens on US, local risks

Caution marked stock trading yesterday, with the main price index weighed down by the pullback in oil prices alongside jitters ahead of the US Federal Reserve meeting and the upcoming presidential elections.

The main-share Philippine Stock Exchange index (PSEi) shed 5.26 points or 0.07 percent to close at 7,250.13 as investors awaited fresh catalysts before taking any bigger position in the market.

“In the absence of any market stir and developments, it’s just trading sideways,” said Manny Cruz, chief strategist at brokerage house Asiasec Equities. “The market is consolidating at current range.”

“I think most investors are waiting for first-quarter corporate earnings,” he said.

Cruz said he expected the PSEi finding support at the 7,190 level.

Asked whether the market was affected by the nearing presidential elections, Cruz said: “If you look at the current rating, there’s some sense of conviction that there’s already a front-runner, so it’s just a matter of time before the market can factor in that kind of event.”

Leading the latest surveys is Davao City Mayor Rodrigo Duterte, followed by Sen. Grace Poe.

As to other external factors weighing down sentiment, Cruz said: “We’re just tracking the daily prices of oil movements (and the) same (is true) with the regional markets.” Doris Dumlao-Abadilla and Bernadette Nicolas