US rate jitters spill to local bourse
Without a fresh catalyst, the local bourse mirrored declines in US markets on Wednesday due to anxiety over interest rate cuts, with the benchmark stocks index slipping below 7,400.
By the closing bell, the Philippine Stock Exchange Index (PSEi) shed 0.61 percent, or 45.5 points, to 7,367.66.
Meanwhile, the broader All Shares Index went down by 0.85 percent, or 34.74 points, to close at 4,050.76.
A total of 1.2 billion shares worth P4.52 billion changed hands, stock exchange data showed. This is below the P5.19-billion year-to-date average, according to Philstocks Financial Inc.
READ: Oil prices rise as US stocks move sideways
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., noted that anxiety in US markets had spilled over to the PSEi due mostly to rate cut and third-quarter earnings jitters.
Article continues after this advertisementThe Federal Reserve, whose policy directions are often mirrored in other markets, is set to meet on Nov. 6 to 7 to determine whether it would again cut interest rates after its surprise half-point cut in September.
Article continues after this advertisementThe tepid trading was likewise caused by the temporary closure of institutions due to Tropical Storm “Kristine,” Limlingan added.
Traders have yet to see a fresh catalyst for the bourse, as most blue chip firms have not yet released their earnings results for the first nine months of the year, said Japhet Tantiangco, senior analyst at Philstocks.
Sy family-led BDO Unibank Inc. was the top-traded stock as it shed 0.43 percent to P163.30 each.
It was followed by International Container Terminal Services Inc., down 2.49 percent to P407; Ayala Land Inc., down 1.26 percent to P35.35; Bank of the Philippine Islands, up 0.56 percent to P143.80; and Metropolitan Bank and Trust Co., down 1.27 percent to P78 per share.
Other actively traded stocks were Globe Telecom Inc., which slipped by 3.35 percent to P2,310 after announcing the 2025 retirement of president and CEO Ernest Cu; Monde Nissin Corp., up 3.79 percent to P11.50; SM Prime Holdings Inc., down 1.41 percent to P31.40; ACEN Corp., down 3.10 percent to P5; and SM Investments Corp., up 0.42 percent to P960 each.
Losers overpowered gainers, 128 to 71, while 55 companies closed unchanged, stock exchange data showed.
