Stocks end 3-day climb on Fed report
The local stock index on Friday ended a three-day run-up, slipping below the 5,000 mark after the US Federal Reserve chair dashed hopes of more monetary stimulus, negating news about an actual interest rate cut by China.
The main-share Philippine Stock Exchange index lost 28.88 points or 0.57 percent to close at 4,994.07.
For the week, the main index lost 68.37 points or 1.3 percent, reversing the 2.8-percent gain in the previous week when the Philippines benefited from a better-than-anticipated economic growth of 6.4 percent, a positive credit watch by Moody’s and President Aquino’s political victory from the ouster of Supreme Court Chief Justice Renato Corona.
In a research note, Metrobank said the local bourse was expected to trade flat with a downward bias due to the lack of positive near-term trading leads. It noted that Wall Street had closed lower overnight, losing much of Thursday’s gains.
“China’s interest rate cut boosted investor sentiment but early gains were [erased] after Fed Chair Ben Bernanke stopped short of signaling a commitment to a fresh policy action to support the US economy. Gold declined sharply after Bernanke’s comments. On the local front, macroeconomic fundamentals [remain] to be strong, but problems overseas will definitely weigh on investor sentiment,” Metrobank said.
At the local market, all counters ended in the red except for the mining/oil, which was up 1.34 percent.
Value turnover was thin at P4.18 billion as external jitters continued to hound markets. There were only 53 advancers that were overwhelmed by 101 decliners while 41 stocks were unchanged.
The index was weighed down by PLDT, AGI, Metrobank, BDO, EDC, Megaworld, Philex, RLC and Aboitiz Power. Among non-PSEi stocks, Philex Petroleum also fell in heavy volume. Doris C. Dumlao
