Market slips ahead of US Fed meeting

MANILA, Philippines — Share prices pulled back yesterday as investors treaded with caution ahead of the policy meeting of the US Federal Reserve.

The Philippine Stock Exchange index slipped by  0.07 percent or 4.86 percent to close at 6,848.43, while the broader All Shares index declined by 0.12 percent or 4.41 points to settle at 3,566.48.

Luis Limlingan of Regina Capital said shares softened as investors await guidance on monetary policy as the Federal Reserve starts its two-day meeting this Tuesday.

Philstocks Financial research and engagement officer Mikhail Plopenio said last-minute profit taking resulted in the market’s negative finish yesterday.

“Investors seem to be cautious ahead of the Federal Reserve’s policy meeting given that the US’ producer price index data last Friday was higher-than-expected. This resulted in a sideways movement of the market for Tuesday’s session,” Plopenio said.

Plopenio added that net market value turnover was strong at P5.65 billion, higher than the year-to-date average of P5.02 billion.

Those in the red dominated the local counters with the mining and oil as well as holding firms retreating by more than one percent each.

The property sector climbed by 1.73 percent and financials increased by 0.21 percent.

Market breadth was negative as decliners whipped advancers, 114 to 84, while 48 issues were unchanged.

Converge ICT Solutions led the index members, gaining by 3.16 percent, while Bloomberry Resorts dropped the most at 8.7 percent.