Stocks end lower ahead of Fed decision
The local stock barometer fell to the 7,900 level on Monday ahead of the closely watched US central bank policy-setting this week.
The main-share Philippine Stock Exchange index (PSEi) tumbled 81.21 points or 1.02 percent to close at 7,908.99. Trading sentiment was mixed elsewhere in the region.
On Tuesday, the US Federal Reserve (Fed) Open Market Committee is expected to discuss a potential rate cut to cushion the impact of a lingering trade war with China.
Local stockbrokerage Papa Securities said it was highly likely that the local index would stay in its trading range in the meantime as the market waits on a couple of developments that would materialize in the coming days.
“On the US markets and the Fed—The Dow and S&P500 closed flat last Friday night, ending 0.1 percent in the red, with markets anticipating the Fed’s decision in their meeting the next two days. Our stand is with consensus that cutting now would be too soon—placing our bets on a cut in July instead, especially as the Fed waits on June’s labor figures,” Papa Securities said.
On the FTSE rebalancing on June 21, Papa Securities said investors should take advantage of any dips, adding “we don’t expect any significant outflow from this event.”
All counters at the local bourse ended in the red, led by the financial, industrial and services counters, which all slipped by more than 1 percent,
Value turnover amounted to P5.02 billion. Foreigners were net sellers to the tune of P587.43 million.
There were 136 decliners that edged out 70 advancers while 43 stocks were unchanged.
The PSEi was weighed down most by JG Summit, which lost 3.52 percent, while PLDT, ICTSI and Globe Telecom all declined by more than 2 percent.
BDO, SM Prime and Security Bank all slipped by over 1 percent. Ayala Corp., BPI, Meralco, SMC and Metrobank also declined.
Among those that bucked the downturn were SM Investments and LTG, which rose by 0.53 percent and 0.65 percent, respectively.
