With investors still waiting for the results of the ongoing Federal Reserve meeting, the local stock market snapped from its three-day rally, with the benchmark index shedding less than six points.
The Philippine Stock Exchange index retreated from its three-day rally on Wednesday, losing 5.57 points, or 0.08 percent to 6,513.20, while the wider all-shares index dipped by 9.30 points, or 0.23 percent to close at 4,022.12.
“The surge of buyers that marked the last three sessions tapered off a day ahead of the crucial Federal Reserve meeting—the fulcrum of global equity market’s fate,” Jun Calaycay, analyst at Accord Capital Equities Corp., said.
According to him, the way the market performed appeared to discount the Fed decision pointing to a “market friendly” announcement.
“Ben Bernanke’s announcement at the conclusion of the meeting will be couched in what has been known as ‘Fed-Speak’—a pattern that says a lot but reveals a little, leaving the market to listen to what it does not say,” Calaycay said.
“Once the Fed issue is hurdled, investors can go back to the bigger consideration and closer scrutiny of fundamental valuations, and return to rational portfolio management strategies,” he added.
Except for financials and holding firms, majority of the sectors ended in the red. After idling in the red in early hours of trading, financials managed to go up by 1.18 percent, or 19.50 points to
1,670.05, while holding firms gained 7.59 points, or 0.13 percent to 5,852.82.
Mining and oil, on the other hand, fell substantially by 252.28 points, or 1.61 percent to end at 15,415.65, followed by the property counter, which slid 1.12 percent, or 29.37 points to 2,600.88.
Services also registered a decline, losing 14.54 points, or 0.74 percent to 1,946.67, while industrial shed 47.92 points, or 0.48 percent to 10,012.66. Market breadth was a little changed after advancers were outpaced by the number of the losers, 72 to 80.
Some of the most actively traded stocks were Ayala Corp., SM Prime Holdings Inc. (SMPI), BDO Unibank Inc., Ayala Land. Inc. (ALI) and Puregold Price Club Inc.
SMPI and ALI, ended in the red, while the rest gained.
Madelaine B. Miraflor