• PH stock market ruled by US Fed worries


    Negative sentiment persisted in the market as foreign selling continued to feed on worries that the US Federal Reserve may finally raise interest rates during its policy meeting next week.

    The Philippine Stock Exchange index (PSEi) declined by 0.42 percent or 31.52 points to 7,550.27, while the broader All Shares index increased by 0.87 percent or 39.53 points to 4,573.87.

    Joylin Telagen, equity analyst at IB Gimenez Securities Inc., noted the sell-off on Tuesday was mainly driven by concerns regarding a potential rate hike in the US.

    “I think it’s a risk off sentiment … The US Federal Reserve might hike rates in the upcoming meeting next week. Also, there was disappointment over the ECB (European Central Bank) decision last week, and increasing geopolitical concerns that might move overseas investors out of the market … “ Telagen said.

    “For the last four weeks from August 15 to September 9, foreign outflows in the stock market totaled P21 billion, P15 billion of which came from last two weeks … Expect market volatility until the Fed finally decides next week,” she added.

    The Industrial sector was the sole gainer at the closing bell, with Services the biggest loser with a 1.17-percent decline.

    Among the actively traded, stocks only Ayala Corp. and Universal Robina Corp. advanced, while Security Bank Corp., Ayala Land Inc., GT Capital Holdings Inc., and SM Prime Holdings Inc. registered declines.

    Total trades reached 3.52 billion shares, valued at P8.59 billion. Decliners outnumbered advancers, 131 to 65, while 47 issues were unchanged.

    On Friday, the PSEi lost 1.11 percent or 85.28 points to 7,581.79, while the All Shares fell by 0.68 percent or 31.19 points to 4,534.34. The market was closed on Monday, September 12, in observance of Eid’l Adha or the Muslim Feast of Sacrifice.


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