PSEi dips again as Fed resolves to continue fight vs inflation

Philippine share prices extended losses on Thursday after a summary of the recent US Federal Reserve policy meeting revealed continued wariness over high inflation while foreigners continued to dump local stocks.

By the closing bell, the benchmark Philippine Stock Exchange index (PSEi) slipped 0.2 percent, or 13.33 points, to 6,685.90 while the broader All Shares index sank 0.2 percent, or 7.16 points, to 3,572.20.

Major US stock indices ended mixed after minutes of the Feb. 1 Fed policy meeting showed all officials supporting the decision to raise interest rates, albeit in smaller-sized increments, in the future.

Investors also weighed data from the Bangko Sentral ng Pilipinas (BSP) showing short-term investments or hot money surging to $292 million, which helped fuel the PSE bull market rally last month.

Meanwhile, the PSEi was hit by renewed selling pressure on Thursday after sinking below the 6,750 support level two days ago.

“The recent break below the 6,700 levels confirms the breakdown towards 6,300 [to] 6,500 levels based on the charts. Looming rate hikes by the BSP to trim sticky inflation could trigger such moves,” said Jonathan Ravelas, managing director at eManagement for Business and Marketing Services.

A total of 932.4 million shares valued at P4.35 billion changed hands while foreign selling continued, netting nearly P713 million on Wednesday.

Globe Telecom Inc. was the top traded stock as it dropped 0.98 percent to P1,920 per share.

Overall, there were 90 losers against 85 advancers while 39 companies closed unchanged.

—Miguel R. Camus