PSEi down 83.18 points as anxiety hits market

The local stock barometer slid below the 7,800 mark on Wednesday ahead of the US Federal Reserve’s keenly-awaited monetary policy meeting.

The main-share Philippine Stock Exchange index (PSEi) declined by 83.18 points or 1.06 percent to close at 7,736.07 as trading resumed after the Labor Day break.

Investors pared holdings especially of large conglomerates. Foreigners were net sellers amounting to P340.68 million.

One thing to look out for would be the Fed’s meeting late Wednesday. “Given that the market projects only a 34.2 percent probability of a hike, a move contrary to expectations will definitely add to the mounting pressure on our dovish BSP (Bangko Sentral ng Pilipinas),” local stock brokerage Papa Securities said.

The Monetary Board, the BSP’s highest policy-making body, will discuss a possible rate setting on May 10.

The holding firm counter was the most battered for the day, declining by 1.62 percent. The services counter also slipped by 1 percent while the financial, mining/oil and property counters also declined.

While the main index fell, market breadth was positive as other investors saw trading opportunities among second-liner stocks.

There were 117 advancers that edged out 87 decliners, while 43 stocks were unchanged.