Fed hike decision clouds PSEi direction

The benchmark Philippine Stock Exchange index (PSEi) closed relatively flat on Wednesday as investors held back from making big bets ahead of an expected decision by the US Federal Reserve to raise interest rates to stave off surging inflation.

The PSEi rose 0.09 percent, or 6.53 points, to 7,026.45 while the broader all-shares index was up 0.53 percent, or 19.61 points, to 3,713.68.

PSE subsectors were mixed, further showing signs of indecision at home while regional equity indices closed mostly higher.

Much of the focus was on the potential impact of a US interest rate hike on global markets. Federal Reserve chair Jerome Powell said he would support a 25-basis point rate hike this week.

Consumer prices in the United States surged to a 7.9-percent annual rate last month, marking a fresh 40-year high.

Property and banking stocks tumbled on Wednesday, while mining and oil gained 2.21 percent. Industrial stocks rose 1.74 percent, while services and holding firms added 0.55 percent and 0.09 percent, respectively.

A total of 1.32 billion shares valued at P7.75 billion changed hands on Wednesday while foreign buyers returned via net purchases of P23.87 million.

Gainers outnumbered losers, 119 to 59, while 55 companies closed unchanged, PSE data showed.

SM Prime Holdings Inc. was the top traded stock on Wednesday as it slipped 2.69 percent to P37.95 per share.

—Miguel R. Camus
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