Stocks drop anew as Fed pushes back on rate cuts

MANILA, Philippines — The stock market slipped yesterday but still managed to end above the 8,000 mark.

The Philippine Stock Exchange index (PSEi) retreated by 20.52 points, or 0.26  percent, to settle at 8,013.57.

Likewise, the broader All Shares index lost 11.49 points, or 0.23 percent, to finish at 4,897.51.

Majority of the indexes also finished in the negative zone with only the mining and oil and property gauges closing in positive territory.

Total value turnover, meanwhile, reached P8.128 billion even as market breadth was negative.

Decliners outpaced gainers, 108 to 86 while 56 issues were unchanged.

Traders said the market reacted negatively to recent reports that the US Fed is pushing back on market expectations to deliver a significant rate cut of half a percentage point as soon as its next meeting.

“Curbed hopes of monetary easing by the Federal Reserve plunged the local bourse by 20.52 points or 0.26 percent to 8,013.57, ” Philstocks Financials said.

Traders said the sentiment could improve depending on the outcome of the meeting between President Trump and President Xi during the upcoming Group of 20 Meeting in Japan.

Thus, investors are not expected to be aggressive now while they are still waiting for the meeting.

Filinvest Land Inc., Wilcon Depot and Ginebra San Miguel among others reached new 52-week highs yesterday.

FLI finished at P1.87 percent, up 8.72 percent. Wilcon was up by 0.81 percent to P17.42 while Ginebra was up 5.09 percent to P60.90 percent.