Index retreats on lack of market-moving news

MANILA, Philippines – Share prices were down anew yesterday as investors remained cautious before a widely anticipated increase in US interest rates later in the week, analysts said.

The main composite index stayed below the 6,800-mark, finishing 44.64 points lower at 6,701.35, while the broader All Shares index gave up 22.45 points to settle at 3,871.67.

Justino Calaycay, analyst at Philstocks Financials, said there are little to no signs emerging to at least provide a cushion to the prevailing negativity.

It looks like we are headed toward the 30 percent ‘loss probability’ based on the 10-year December performance matrix. Ahead of the start of the US Federal Reserve’s two-day meeting, markets seem pretty unsure on where to go even as insofar as expectations are concerned, tomorrow’s announcement will carry a statement on the lift off,” Calaycay said.

Calaycay said the consensus is that it will be a quarter-percentage point adjustment (25 basis points).

“In theory, if the adjustment is highly anticipated – almost certain – then it should have already been “digested” or discounted on the prices. But is it? Or maybe there are lingering hopes that the US Fed will pull a surprise,” he said.

Across Asia-Pacific, MSCI’s broadest index of Asia-Pacific shares outside Japan was up about 0.1 percent. Japan’s Nikkei stock index ended down 1.7 percent at a 7-1/2-week low and Chinese stocks lost 0.3-0.5 percent.