PH shares lose critical foothold amid Fed rate plans
Investors continued to worry over the Federal Reserve’s hawkish stance, pushing the Philippine Stock Exchange index (PSEi) to dive below the 6,600 territory on Wednesday.
The benchmark PSEi plunged by 1.59 percent, or 106.62 points, to end at 6,583.65 while the broader All-Shares index slid 1.35 percent, or 47.78 points, to close at 3,500.72.
All sectors were in the red except for property, which rose by 0.98 percent. The holding firm and service indices booked the most losses with declines of 3.50 percent and 1.57 percent, respectively.
“The local index stretched its losing streak to close the month on the Fed’s remarks that it will [still] raise its interest rates to temper inflation despite potentially negative impacts on the economy and corporate profits,” Regina Capital Development Corp. head of sales Luis Limlingan said.
Lack of positive catalysts
“The main index also breached the 6,600 support level amid a lack of positive catalysts. If the market will not return above 6,600, then the next support would be at the 6,400 level,” said Claire Alviar, Philstocks Financial, Inc. assistant manager for research and online engagement.
About 1.45 billion shares valued at P8.87 billion were traded. Decliners led advancers, 128 to 67, while 42 issues did not change hands.
SM Prime Holdings’ shares, the most actively traded, climbed by 2.57 percent to P37.85 each.
This was followed by International Container Terminal Services Inc., down 1.52 percent to P181.20; Bank of the Philippine Islands, up 0.58 percent to P94.95; Converge ICT Solutions, down 3.12 percent to P17.40, ACEN Corp., down 2.98 percent to P7.50; and Ayala Land Inc., down 0.87 percent to P28.65.Other active names were BDO Unibank Inc., down 1.98 percent to P128.80; Monde Nissin Corp., up 0.49 percent to P16.50; Solar Philippines Nueva Ecija Corp., flat at P1.69; and SM Investments Corp., down 5.08 percent to P831.
