Index tumbles ahead of US Fed meeting

MANILA, Philippines - The Philippine Stock Exchange index (PSEi) plunged yesterday ahead of US Federal Reserve’s two-day meeting starting Tuesday.

The benchmark stock index fell 1.006 percent or 78.59 points to finish at 7,730.95 while the broader all shares index slipped 1.04 percent or 47.46 points to 4,497.59.

“As attention swiveled in the direction of the US Federal Reserve’s two-day meeting beginning tomorrow (Tuesday), markets scaled back exposures to equities anticipating a more definitive hint on timing an interest rate hike,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

“Certain technical considerations may have likewise entered the picture as the index broke below the 7,800-mark right at the opening bell,” Calaycay added.

The local market took its cue from Friday’s downbeat session on Wall Street which sagged due to weak US inflation data.

Most Asian shares, meanwhile, firmed up despite a sour performance from Japan’s Nikkei.

In the country, it was a bloodbath as four of the six counters declined by more than one percent each.

Property and mining and oil firms tumbled 1.76 percent each while services and industrial companies loss 1.06 and 1.03 percent, respectively.

Decliners pummeled advancers, 142 to 47, while 34 stocks did not change.

Value turnover slimmed to P7.95 billion from last Friday’s P8.71 billion.