PSEi back to 6,900 on more rate hikes
THE stock market fell back to the 6,900 level on Friday as market players were reportedly disheartened by the US Federal Reserve’s (the Fed) statement of more rate increases, coupled with disappointing earnings from listed local firms.
The Philippine Stock Exchange index (PSEi) traded the entire day in the red, ending down by 0.95 percent or 66.89 points to close at 6,968.82.
The wider All Shares declined by 0.47 percent or 19.99 points to finish at 4,269.88.
“Philippine shares slid after the FOMC (Federal Open Market Committee) meeting gave a signal to investors of another rate hike, [coupled with the] oil falling into bear territory and some rebalancing after many companies had reported earnings,” Regina Capital Development Corp. head of sales Luis Limlingan said in a market note.
Diversified Securities Inc. trader Aniceto Pangan echoed Limlingan’s comment, saying the market “continued is dowtrend due to lackluster earnings from listed firms.”
Firms that reported disappointing profits on Friday included JG Summit Holdings Inc., Metro Retail Stores Group Inc., Global Ferronickel Holdings Inc. and Phoenix Petroleum Philippines Inc.
Overseas, the Fed kept rates unchanged during a recent two-day meeting but signaled further rate adjustments amid continued strong economy.
Two of Wall Street’s main indices were in the red territory, except for the Dow Jones, which went up 0.04 percent.
All sectoral results in Manila ended in the red territory, with the services sector falling the most by 2.04 percent.
More than 1.16 billion issues were traded valued at P5.96 billion.
Winners led losers, 105 to 84, while 53 issues were unchanged.
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