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PHILIPPINE STOCKS continued to decrease on Wednesday due to the lack of new trading catalysts and following Wall Street’s dip overnight.
The Philippine Stock Exchange index (PSEi) fell by 0.16% or 9.82 points to finish at 6,108.72, while the broader all shares index decreased by 0.3% or 11.38 points to conclude at 3,682.29.
“The domestic market further declined as dissatisfaction regarding the Philippines’ corruption matters persisted, impacting investors’ outlook,” stated Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco in a market analysis. “The unfavorable indicators from Wall Street, the depreciation of the peso against the US dollar, and the recent surge in long-term local Treasury yields also burdened the local exchange.”
“Pessimistic sentiment in the market continues to dominate as there is currently no definitive catalyst in sight. Additionally, global occurrences are also impacting Philippine market perception, as Fed Chair Powell suggested that sluggish hiring and ongoing inflation are creating a difficult landscape for the US economy,” remarked Regina Capital Development Corp. Head of Sales Luis A. Limlingan in a Viber note.
US stocks concluded lower on Tuesday, ending a three-session streak of record closing highs, as US Federal Reserve Chair Jerome H. Powell indicated that the US central bank must balance inflation worries with a faltering job market in its future interest rate decisions, according to Reuters.
In remarks made on Tuesday, Mr. Powell provided minimal indication of when he anticipates the Fed might next lower interest rates. The Fed reduced rates last week for the first time this year and suggested that additional reductions could be forthcoming.
The Dow Jones Industrial Average dropped 88.76 points or 0.19% to 46,292.78; the S&P 500 fell 36.83 points or 0.55% to 6,656.92; and the Nasdaq Composite decreased by 215.50 points or 0.95% to 22,573.47.
Mr. Powell’s colleagues earlier expressed views from both perspectives of the policy debate. Fed Vice Chair for Supervision Michelle Bowman mentioned that the Fed could lessen concerns regarding ongoing inflation and should commit to rate cuts in support of the job market.
Domestically, all sectoral indices ended in the red on Wednesday. Property decreased by 0.37% or 8.96 points to 2,394.07; industrials declined by 0.33% or 29.85 points to 8,843.17; holding firms fell 0.21% or 10.81 points to 5,012.23; services were down by 0.17% or 3.93 points to 2,235.86; mining and oil dipped by 0.15% or 18.49 points to 12,275.03; and financials slipped by 0.13% or 2.73 points to 2,065.82.
Value turnover declined to P5.26 billion on Wednesday with 5.37 billion shares exchanged, compared to P22.69 billion with 2.72 billion stocks traded on Tuesday.
Decliners outnumbered advancers, 103 to 88, while 63 stocks remained unchanged.
Net foreign selling amounted to P370.63 million on Wednesday, a shift from the P7.05 billion in net buying observed on Tuesday. — Alexandria Grace C. Magno with Reuters
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