Index slides on quiet trades amid expected US rate cuts

MANILA, Philippines — It was another quiet day at the Philippine stock market yesterday with trading reflecting another lackluster session as the market already took into account the decision of the US Federal Reserve to cut interest rates.

The benchmark Philippine Stock Exchange index (PSEi) went down by 3.97 points, or 0.05 percent, to close at 7,911.32, while the broader All Shares index slipped 3.47 points, or 0.07 percent, to settle at 4,782.96.

Most sectors were down, led by the holding firms, services and mining and oil gauges ending in negative territory.

Total value turnover reached P4 billion. Market breadth was negative 108 to 86 while 53 issues were unchanged.

“The local market in the second half of trading rallied, but failed to break above the previous close following the sentiments that the US Fed may not cut anymore rates for 2019 and lack of the catalyst sends the Philippine’s main index to 7,911.32,” Philstocks Financials said.

Luis Limlingan of Regina Capital gave this comment: “It was another quiet session for the local market after the Federal Reserve cut its benchmark rate, in line with market expectations. Equities across the region pared their losses.”

The 25-basis point cut of the US Fed was within expectations, Limlingan said.