PSEi down as markets decipher Fed moves

The local stock barometer dipped yesterday, tracking heightened risk aversion across global markets following the US Federal Reserve’s rhetoric that it did not care that much about global market volatility.

The main-share Philippine Stock Exchange index (PSEi) shed 16.21 points or 0.21 percent to close at 7,563.41.

Overnight, the Dow Jones Industrial Average tumbled by 351.98 points or 1.49 percent after the US Fed’s monetary policy meeting. While the Fed hinted of a less aggressive path for monetary tightening next year, the US central bank hiked the targeted rate by a quarter on Wednesday and suggested that it was not worried about a little global market volatility.

Sentiment is mixed at the PSEi heading into the last two trading days of the week, local stock brokerage house Papa Securities said in a research note.

“Negativity should stem from how US markets dropped [Wednesday] night, but reduction [of projected 2019 interest rate increases] to two planned hikes from the previous three should temper drops. Expect the PSEi to trade between 7,350 and 7,700, the location of its previous lows and highs, respectively,” the brokerage said.

The decline was led by the mining/oil counter, which tumbled by 1.5 percent. The industrial, holding firm and property counters also slipped.

On the other hand, the financial and services counters slightly gained.

Total value turnover amounted to P5.88 billion.

There were 117 advancers that edged out 78 decliners, while 42 stocks were unchanged.

The PSEi’s decline was led by property giant Ayala Land, leading conglomerate SM Investments Corp. and conglomerate San Miguel Corp., all of which tumbled by over 2 percent.

Globe Telecom lost 1.52 percent while Jollibee, BDO and Metro Pacific also slipped.

One notable decliner outside the PSEi was Megawide, which faltered by 0.55 percent.