PH shares under pressure as Fed decision looms

Philippine shares were mostly lower on Wednesday ahead of the release of crucial fourth quarter growth data on Thursday and the conclusion of the US Federal Reserve meetings.

The Philippine Stock Exchange index (PSEi) dropped 0.47 percent, or 34.60 points, to 7,253.61 while the broader all-shares index shed 0.22 percent, or 8.37 points, to 3,856.11 by the closing bell.

Foreign selling also accelerated as overseas investors shed their holdings by a net amount of P870.31 million.

“Philippine shares closed lower as investors remained restless about the ongoing Fed meeting and corporate earnings,” Luis Gerardo Limlingan, managing director at Regina Capital Development, said in a note to investors on Wednesday.

“[US] officials are expected to signal their willingness to raise rates in March to battle surging inflation,” he added.

Mining and oil was the sole gainer during the session as it added 1.11 percent.

Financials tumbled 1.01 percent followed by property, down 0.56 percent; services, down 0.41 percent; holding firms, down 0.19 percent; and industrial, down 0.13 percent.

SPNEC extends gains

A total of 1.5 billion shares valued at P6.41 billion changed hands on Wednesday. There were 102 losers against 78 gainers, while 60 companies closed unchanged.

Solar Philippines Nueva Ecija Corp. (SPNEC) extended gains during the session as it added 2.48 percent to P2.07 per share.

It was followed by Figaro Coffee Group Inc., up 17.95 percent to P0.92; SM Investments Corp., flat at P950; BDO Unibank Inc., down 2.04 percent to P124.60; and Ayala Land Inc., down 1.87 percent to P34.10 per share.

Other actively traded stocks were PLDT Inc., down 2.44 percent to P1,840; Globe Telecom, down 0.43 percent to P3,220; SM Prime Holdings Inc., up 0.43 percent to P35.20; Security Bank Corp., down 2.42 percent to P105; and Ayala Corp., down 0.57 percent to P868 per share.