Index drops anew on volatile trades

MANILA, Philippines — Share prices ended lower for a second day on choppy trading as investors weigh developments on the coronavirus outbreak and more guidance on the US Federal Reserve’s easing plans.

“The local market fluctuated between gains and losses for the session before losses were magnified on market-on-close selling,” AB Capital Securities said in a commentary.

The benchmark Philippine Stock Exchange index (PSEi) slipped 33.91 points or 0.50 percent to close at 6,786.62 while the broader All Shares index declined 0.89 points or 0.02 percent to finish at 4,204.11.

Total value turnover reached P6.9 billion. Market breadth was negative, 100 to 84, while 64 issues were unchanged.

Net foreign buying, however, persisted for the fifth straight session with P631 million.

Around Asia, shares were mixed following a pullback on Wall Street after the deadly attacks on Afghan civilians and US troops at the Kabul airport on Thursday.

Meanwhile, Fed chair Jerome Powell is scheduled to speak at the central bank’s annual symposium in Jackson Hole, Wyoming, later Friday.

Any indicators when the bank will start scaling back on asset purchases will be watched.

Several Fed officials have suggested that the easing will take place sooner rather than later, although a firm timeline has not been set.

“Despite the ‘risk on’ mood heading into Jackson Hole, which arguably points to an accommodative enough Fed tilt to keep markets buoyed, thin trading in the US bond markets this week suggests latent caution,” Hayaki Narita at Mizuho Bank said in a report.