Stocks take breather ahead of US Fed meet

MANILA, Philippines - Share prices took a breather yesterday, declining 36.50 points as investors took their cue from regional slump ahead of the US Fed meeting.

The Philippine Stock Exchange index (PSEi) settled lower at 7,289.26 points, while the broader All Shares index slid 12.29 points, or 0.29 percent, to end at 4,189.25.

Total value turnover reached P39.152 billion in a session that saw a close race between decliners and advancers, 87 to 84, in favor of advancers. Thirty eight stocks were left unchanged.

Analysts attributed the decline to the regional slump ahead of the US Federal meeting.

The US Fed is expected to issue a policy statement at the conclusion of a two-day meeting on Wednesday and is again expected to hold off its first rate hike in nearly a decade until next year.

Analysts said the Fed would have a difficult time convincing investors that it can tighten monetary policy before the end of the year in the face of US and global economic headwinds.

Many investors had expected the rate hike last September but the US Fed decided to keep rates unchanged.

Elsewhere in the region, Hong Kong’s Hang Seng fell 0.6 percent while South Korea’s Kospi declined 0.4 percent and Shanghai stocks also shed 0.7 percent.