Stock market drops ahead of rate decisions
The stock market extended a retreat on Wednesday with investors again in selling mode ahead of today’s Monetary Board meeting.
The Philippine Stock Exchange index (PSEi)dropped by 0.87 percent or 63.96 points to close at 7,268.21. It touched bear level during intra-day trading by falling to as low as 7,205.04.
The wider All Shares, meanwhile, declined 0.77 percent or 34.43 points to finish at 4,460.47.
“If it weren’t for the last-minute buying activity, we would’ve re-entered the bear market again due to the anticipation that the US Federal Reserve as well as the Bangko Sentral ng Pilipinas (BSP) will be raising rates,” Timson Securities Inc. trader Jervin de Celis said.
“Inflation is feared to have gone up versus last month’s figure due to the typhoon’s devastating effect on the agricultural lands in Northern Luzon,” he added.
The Fed is expected to announce the results of a two-day policy meeting at 2 a.m. (Manila time) today.
The BSP’s policymaking Monetary Board, meanwhile, is expected to announce another 50 basis point (bps) increase, which would bring adjustments since May to a total of 150 bps.
The PSEi’s decline bucked gains for most of the region. Tokyo grew 0.39 percent, Shanghai surged 0.92 percent and Hong Kong rose 1.15 percent. Seoul added 0.68 percent and Jakarta firmed up 0.32 percent.
In Manila, only the property index registered gains, rising by 1.68 percent.
Volume turnover remained thin with 1.05 billion issues valued at P4.94 billion traded.
Losers led winners, 121 to 66, while 54 issues were unchanged.
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