PSEi struggles in the dark for 8,000 goal

The stock barometer shied away from the 8,000 mark as investors braced for the ending of a dovish monetary cycle.

The Philippine Stock Exchange index (PSEi) shed 42.94 points or 0.53 percent to close at 7,977.12 ahead of the long weekend break.

Elsewhere in the region, stock markets traded with mixed sentiment after the US Federal Reserve’s latest policy meeting. While the Fed cut targeted funds rate by 25 basis points, as expected, the market anticipated the US central bank’s change in stance.

“Treasuries rallied across the curve after the Fed lowered rates as expected, and hinted at a pause unless the economic outlook changes materially,” said BDO Unibank chief strategist Jonathan Ravelas.

“It doesn’t look like the Fed will be making any more cuts this year, and together with the BSP’s (Bangko Sentral ng Pilipinas) similar decision awhile back [it] may mean that we’re done looking for any more rate cuts for 2019,” local stock brokerage Papa Securities said.

At the local market, the decline was led by the financial counter, which fell by 1.16 percent; while the industrial, services, mining/oil and property counters also slipped. The holding firm ended marginally higher.

Value turnover for the day amounted to P7.76 billion.

A hundred decliners outnumbered 78 advancers, while 61 stocks were unchanged.

The PSEi was weighed down most by BPI, ICTSI and Security Bank, which all declined by close to 3 percent.

Ayala Land lost 2.02 percent while AGI and Bloomberry declined by over 1 percent.

SM Prime, Ayala Corp., BDO, First Gen and DMCI all slipped.

On the other hand, Aboitiz Power rose by 2.96 percent. SM Investments and Metrobank also edged higher.

One notable gainer outside the PSEi was leading convenience store operator Philippine Seven Corp., which added 3.47 percent.