PSEi closes down as buyers step back ahead of Dec. 12 BSP meet

The local stock barometer declined in thin trade on Tuesday, tracking a generally sluggish sentiment across the region.

The main-share Philippine Stock Exchange index (PSEi) retreated by 43.62 points or 0.56 percent to close at 7,736.18.

Investors traded with caution ahead of key central bank meetings and a forthcoming deadline for US and China to hammer out a trade deal.

Christopher Mangun, head of research at AAA Equities, said global equities markets ended lower ahead of the two-day U.S. Federal Reserve meeting which would start Tuesday night. “This is the last policy meeting for the year and investors are betting on another rate cut. Anxiety on trade concerns grow by the day as we approach the deadline for fresh tariffs on Chinese goods,” he said.
At the local market, Mangun said “buyers have stepped back and are letting weak hands do their worst.”

The next support level is at 7,700. However, he said the PSEi may bounce on Wednesday and end above the 7,750 major support level.

“The next immediate catalyst could likely be a surprise announcement by the BSP (Bangko Sentral ng Pilipinas) on their meeting on Thursday, Dec. 12, so that should be what to watch for,” local stock brokerage Papa Securities said.

At the local market, the PSEi was dragged down by the financial and industrial counters, which fell by over 1 percent each.
The holding firm, services and mining/oil counters also slipped.

On the other hand, the property counter added 0.55 percent ahead of the Bangko Sentral ng Pilipinas’ monetary setting on Thursday.
Value turnover was thin at P3.87 billion. There P563 million in net foreign selling.

There were 139 decliners that overwhelmed 55 advancers, while 44 stocks were unchanged.

PLDT, the day’s most actively traded stock, slumped by 3.38 percent, while ICTSI and Puregold both lost over 2 percent.

Metrobank, Security Bank and DMCI all declined by over 1 percent.

SM Prime, BDO and SM Investments also dipped. INQ

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