Index dips as market braces for Yellen speech

MANILA, Philippines - Share prices were subdued yesterday as investors braced for the upcoming speech of US Federal Reserve chairperson Janet Yellen.

The benchmark Philippine Stock Exchange index (PSEi) eased 9.05 points or 0.11 percent to settle at 7,845.49, while the broader All Shares index gave up 2.18 points or 0.04 percent to finish at 4,661.61.

Analysts said Asian stocks remained subdued as investors across the region were wary of Yellen’s speech later in the day (evening in Asia). The local stock market was no exception.

Total value turnover reached P9.48 billion as advancers edged out decliners, 114 to 72 while 50 stocks were left unchanged.

The US central bank last raised rates in December last year and will decide again on Sept. 20 to 21.

Meanwhile, the dollar edged down and global shares slipped to a two-week low as investors turned cautious before a keynote speech by Yellen that could map out a clearer path for US interest rates.

The MSCI All-Country World index was down 0.1 percent by, after slipping to its lowest level since Aug. 9, while the pan-European 600 fell 0.2 percent.

Investors were wary of Yellen hinting at a near-term interest rate hike, which could divert some of the liquidity that has underpinned riskier assets worldwide, though others predicted she would strike a more equivocal note.

Recent hawkish comments from other Fed officials have raised expectations of a US rate hike this year, though markets are not fully pricing one in till 2017.