Index eases as market awaits Fed decision

MANILA, Philippines - Local stocks showed no immunity to sluggish regional markets yesterday as it went back to the negative territory.

After finishing Wednesday in the green for the first time in six trading days, the Philippine Stock Exchange index (PSEi) slipped right back in the red, shedding 0.40 percent or 27.65 points to close at 6,820.60.

The broader All Shares index likewise followed, declining 0.48 percent or 18.96 points at 3,933.03.

Analysts said the local market followed leads from Asian stocks which plunged on continued weak oil prices.

Aristotle Reyes Jr., equities trader at UPCC Securities Corp., said investors continue to be on a “wait and see” stance as the holidays and the US Federal Reserve rate hike approach.

“December is usually a boring month so we can expect our market like this for quite some time,” Reyes said.

Local counters were covered in red yesterday with the exception of mining and oil companies which registered a flat growth.

Services companies continued to take the biggest blow as it suffered a 1.92 percent drop.

Market breadth remained negative as decliners pummeled advancers, 110 to 45, while 54 stocks were unchanged.

Value turnover improved slightly to P6.55 billion from the previous day’s P4.4 billion.