Shares slip as investors await clues from US Fed

Local stocks struggled anew on Monday as the benchmark Philippine Stock Exchange index (PSEi) slipped below a critical support while investors remained cautious ahead of new data from the US Federal Reserve.

By the closing bell, the PSEi shed 0.51 percent, or 34.90 points, to 6,744.12 while the broader All Shares index lost 0.38 percent, or 13.94 points, to 3,607.75.

The index closed below the crucial support level of 6,750; however, the drop coincided with low volumes as 483.44 million shares valued at P3.3 billion changed hands. Foreigners were also net sellers to the tune of P43.79 million, stock exchange data showed.

The US Fed will release the minutes from its February meeting on Wednesday, which could provide insights on their view on the economy and future actions on interest rates.

This also comes after the Bangko Sentral ng Pilipinas last week raised its key policy interest rate by 50 basis points and hiked its 2023 inflation outlook to 6.1 percent from the 4.5 percent estimate last December.

On Monday, mining and oil took the lead among losing subsectors with a 1.21 percent decline. Other losers were industrial (-0.68 percent), property (-0.49 percent), holding firms (-0.43 percent), financials (-0.39 percent) and services (-0.15 percent).

SM Investments Corp. was the top traded stock as it dropped 0.34 percent to P872 per share.

It was followed by: BDO Unibank Inc., down 0.4 percent to P124.50; Ayala Land Inc., down 0.85 percent to P29.10; Metro Pacific Investments Corp., up 0.72 percent to P4.21; and Manila Electric Co., down 0.65 percent to P308 per share.

Ayala Corp. was flat at P668; SM Prime Holdings Inc., down 0.27 percent to P36.90; Globe Telecom Inc., down 0.98 percent to P2,020; GT Capital Holdings Inc., down 1.7 percent to P520; and Aboitiz Power Corp., down 1.95 percent to P37.75 per share. INQ

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