Index stalls as market awaits US data

MANILA, Philippines -  The stock market dropped more than two percent yesterday as investors await the meeting of the US Federal Reserve as well as the latest US jobs payroll data.

The benchmark Philippine Stock Exchange index plunged 149.18 points, or 2.04 percent, while the broader All Shares gauge dropped 59.42 points or 1.35 percent.

For the rest of the sectoral indices, it was a roller-coaster ride with the holding firms recording the biggest plunge at 2.82 percent.

Total value turnover reached P8.013 billion. Decliners outnumbered advancing stocks 102 to 72 while 47 stocks were left unchanged.

Patrick Cheng, head of Trust Group of China Bank said market investors are waiting for the meeting of the US Federal Reserve.

“From not sure, now it’s suddenly certain.  They (investors) want to see the message. They want to see how hawkish the Fed will be if there will be more rate hikes down the road and if they are confident of the growth of the US economy,” Cheng said.

The Fed is expected to raise rates this month. Investors are also eagerly waiting for economic data from the US, particularly the latest employment figures which would provide clearer indication on where US economy is heading.