PSEi slides out of 8,000 territory on Fed news
Credit to Author: Tyrone Jasper C. Piad| Date: Thu, 31 Oct 2019 16:59:28 +0000
A DAY after breaching the 8,000 level, the stock market slipped after investors cashed in on gains following news that the US Federal Reserve (Fed) is unlikely to cut rates for the rest of the year.
The benchmark Philippine Stock Exchange index (PSEi) slid by 0.53 percent or 42.94 points to close at 7,977.12, while the wider All Shares fell by 0.29 percent or 13.66 points to finish at 4,787.45.
“Investors kept to cash for the long weekend and immediately after the Federal Reserve’s third rate cut of the year and comments from Chairman Jerome Powell that signaled it would be a while before the central bank hikes rates,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The American central bank on Wednesday (Thursday in Manila) trimmed interest rates for the third time this year by 25 basis points in a bid to boost US economic growth.
The American economy has been battered by its long-running trade war with China, but ongoing negotiations between the world’s top two economies to end it have been sparking optimism.
Philstocks Financial Inc. said “investors are also bracing for the upcoming inflation and GDP (gross domestic product) data next week.”
Consumer price growth eased to 0.9 percent in September — the lowest in more than three years — on the back of declining food prices, among others.
The Philippine Statistics Authority will release inflation data for October on November 5.
The country’s economic growth slowed to 5.5 percent in the first half of the year, below the government’s target of 6 to 7 percent.
In New York, markets surged, with the Dow Jones taking the lead at 0.43 percent. Both S&P 500 and Nasdaq rose 0.33 percent.
Asian markets were mixed. Tokyo climbed 0.37 percent, Hong Kong added 0.76 percent, Seoul gained 0.15 percent, Singapore increased 0.74 percent and Thailand inched up 0.19 percent. Shanghai slipped 0.35 percent, Jakarta dipped 0.65 percent and Vietnam lost 0.15 percent.
In Manila, all sectors ended in the red territory, except for holding firms, which rose by 0.02 percent.
Volume turnover stood at 1.10 billion shares for P7.76 billion.
Losers edged winners, 100-78, while 61 issues were unchanged.