Market fails to sustain cheery mood

MANILA, Philippines – The local stock market’s rally, inspired by the US Federal Reserve’s well telegraphed rate hike decision, was short lived.

After the market digested the news, the cheerful mood subsided.

As such, the benchmark Philippine Stock Exchange index (PSEi) closed 38.63 points or 0.56 percent lower while the broader All Shares index still fell below the 4,000-mark, finishing down 23.44 points or 0.59 percent to 3,940.88.

All other indexes closed lower except for the Industrial index, which inched up 5.50 points or 0.05 percent.

Among the indexes, the Mining and Oil index was the biggest loser, falling 247.29 points or 2.36 percent to finish at 10.240.91.

Value turnover amounted to P6.55 billion. Decliners outnumbered advancers, 121 to 55, while 37 stocks were left unchanged.

In a research note, Citigroup said the cheery mood didn’t last long as investors once again began to focus on slowing growth momentum and the stronger dollar.

The US Federal Reserve raised short-term interest rate for the first time in nearly a decade, in a move widely expected by investors and analysts. This put an end to the near-zero borrowing costs that have prevailed since the US financial crisis of 2008. The Fed announced a quarter-point increase in the target rate for the federal funds rate to 0.25 to 0.5 percent.