Index dips as market awaits US rate decision

MANILA, Philippines - The stock market closed lower again yesterday, erasing Thursday’s gains as the market waits for US jobs data for August, which analysts said would play a role in the Federal Reserve’s decision to lift interest rates.

The benchmark Philippine Stock Exchange index (PSEi) was a “sea of red” again with most indices closing in negative territory.

The PSEi tumbled 0.66 percent, or 46.98 points, to settle at 7,051.78. Only the mining and oil index closed higher by 0.57 points or 64.43 percent.

Analysts said a strong jobs number would mean strong growth and allay fears over the global economy.

“A strong print will no doubt fuel speculation that a September rate increase would materialize,” Bernard Aw, market strategist at IG Group, said in a commentary.

Value turnover reached P5.84 billion. Decliners edged out advancers 106 to 63 while 43 stocks were unchanged.

Justino Calaycay of Accord Capital said trading in the succeeding days will continue to be dictated by external influences.

He also said listed company profits are unable to match market expectations, thus the share price adjustments.