Stocks dip on possible US rate hike

MANILA, Philippines - The benchmark stock index dipped yesterday as positive anticipation to the US Federal Open Market Committee‘s two-day policy meeting turned sour after reports hinted that the Federal Reserve may hike rates soon.

The Philippine Stock Exchange index slipped 0.42 percent or 35.52 points to close at 7,756.58 while the broader All Shares index fell 0.44 percent or 19.90 points to 4,502.19.

“A market pause did not come as a surprise Wednesday as investors wait for the US Federal Reserve’s policy announcements.  We expected some investors to trim their holdings, particularly in interest-rate sensitive stocks,” said Jason Escartin, investment analyst at F. Yap Securities.

Analysts said reports abroad have indicated that the Federal Reserve is expected to get rid of its “patient” statement in hiking rates after the two-day meeting.

Locally, analysts said there were no market moving news that helped push stocks higher.

Counters in the Philippines Stock Exchange closed mixed. Services firms took the biggest plunge at 2.05 percent or 43.36 points while mining and oil companies enjoyed the most gains at 0.91 percent or 143.41 points.

Market breadth was negative as decliners overwhelmed advancers, 119 to 52, while 48 stocks were unchanged.

Value turnover increased to P10.76 billion from P9.31 billion the previous day.

Abroad, Asian stocks took its cue from the overnight Wall Street decline given the clues surfacing of a possible rate hike.