PSEi tumbles as investors take wait-and-see stance

MANILA, Philippines — The stock market opened the week on a sour note as investors took a wait-and-see stance while waiting for President Marcos’ first State of the Nation Address (SONA) and the US Federal Reserve’s meeting this week.

The benchmark Philippine Stock Exchange Composite index (PSEi) retreated by 53.86 points or 0.86 percent to close at 6,209.53.

The broader All Shares index likewise tumbled by 21.29 points or 0.63 percent to close at 3,359.77.

Claire Alviar, research analyst at Philstocks Financial Inc. said most investors are in a wait-and-see mode while waiting for the President’s SONA and the Federal Reserve’s meeting this week.

“At home, many investors expect to hear a concrete plan for the next six years from the current administration, especially amid many headwinds locally and globally. Overseas, most markets await the Fed meeting to see how aggressive the Fed will be as it will greatly affect different currencies value,” Alviar said.

The Fed will likely announce its second 75-basis-point increase in its short-term rate in a row, a hefty increase that it hasn’t otherwise implemented since 1994. That will put the Fed’s benchmark rate in a range of 2.25 percent to 2.5 percent, the highest level since 2018.

The sectoral indexes, meanwhile, were mixed but mostly in negative territory.

Total value turnover was thin at P4.3 billion.  Market breadth was negative with 114 gainers versus 61 losers while 47 issues were unchanged.

BDO shares were down by 4.62 percent to end at P115.60 per share following its issuance of a Notice of the Declaration of Default to Udenna Corp.

Meanwhile, Asian shares tumbled yesterday after a retreat on Wall Street spurred by disappointing economic data and corporate earnings. Oil prices also slipped.

Investors are awaiting the next move by the US Federal Reserve, which is expected to raise its key interest rate again on Wednesday as it strives to beat back inflation.