PSEi slips after Fed rate hike | Inquirer Business

PSEi slips after Fed rate hike

By: - Business Features Editor / @philbizwatcher
/ 04:47 PM June 15, 2017

The local stock barometer reversed early gains after retesting the 8,000 mark on Thursday as investors locked up profits after the US Federal Reserve delivered a much-anticipated hike in interest rates.

The main-share Philippine Stock Exchange index shed 1.52 points or 0.02 percent to close at 7,964.49 in mixed trade. The index pulled back after hitting an intra-day peak of 8,028.22.

“The market decided to sell a bit on news as the decision on the FOMC (Federal Open Market Committee) was expected…The statement included modest upgrades to its description of growth but indicated decline in inflation and unemployment rate, and moderation in job growth. Core inflation was running only “somewhat” below 2 percent, a more hawkish reference than expected,” said Luis Gerardo Limlingan, managing director at Regina Capital Development.

Article continues after this advertisement

“The FOMC delivered a 25-basis points rate hike as was priced. However, hawkish surprises came from the advanced degree of detail about the Fed’s balance sheet normalization plans, including a larger-than-expected size of reduction over the first year, together with (Fed) chair (Janet) Yellen’s dismissive comments about recent successive soft inflation readings. Our US economists have revised their forecast for the start of the balance sheet reduction to the September FOMC, and expect the next rate hike now in December,” Citigroup said in a research note.

FEATURED STORIES

At the local market, the day’s decline was led by the financial, holding firm and mining/oil counters. On the other hand, the industrial, services and property counters firmed up.

Domestic investors were the ones mostly pocketing gains as foreigners were on a net buying position amounting to P519.38 million for the day.

Article continues after this advertisement

Total value turnover stood at P8.05 billion. There were 96 decliners that edged out 90 advancers while 58 stocks were unchanged.

Article continues after this advertisement

The PSEi was weighed down most by Metrobank and DMCI which both lost over 2 percent, while ICTSI, Globe Telecom, Semirara and BPI all slipped by over 1 percent.

Article continues after this advertisement

SM Prime, BDO, Ayala Corp. and Metro Pacific all declined.

On the other hand, Puregold and Megaworld both gained over 2 percent while Ayala Land, Meralco, GT Capital and URC all advanced by over 1 percent. PLDT and SM Investments also firmed up.

Article continues after this advertisement

Elsewhere in the region, stock markets mostly ended lower as investors priced in the hawkish US Fed move.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

TAGS: FOMC, Luis Gerardo Limlingan, Philippine stocks, PSEi

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.