SHARE prices on the Philippine Stock Exchange (PSE) declined marginally on Thursday as the market quickly discounted the initial impact of the US Federal Reserve rate increase.
The bellwether PSEi dipped by 0.02 percent or 1.52 points to close at 7,964.49. The broader All Shares retreated by 0.03 percent or 1.49 points to finish at 4,727.56.
The PSEi hit an intraday high of 8,028.22 at 1:39 p.m.
“The market decided to sell a bit on news today as the decision by the FOMC was as expected. The Federal Open Market Committee raised the funds rate to 1 to 1.25 percent,” Regina Capital Development Corp. Managing Director Luis Limlingan said.
The FOMC indicated that the labor market continued to strengthen, with economic activity rising moderately so far this year.
Core inflation was running only “somewhat” below 2 percent, a more hawkish reference than expected. Risks to outlook were described as “roughly balanced,” according to the Fed.
Summit Securities Inc. President Harry Liu said there was “no news” except that the local market was just watching out for the Fed rate adjustment.
“The market is just hovering without new news that may move it. Just small things,” he noted.
The sectoral indices were mixed. Mining and Oil fell by 0.76 percent, Finacials declined by 0.66 percent, Holding Firms retreated by 0.006 percent.
The Services, Property, and Industrial sectors gained 0.11 percent, 0.28 percent and 0.31 percent, respectively.
Among the most actively-traded issues, Universal Robina Corp. gained 1.85 percent, or P3 at P165 per share, GT Capital Holdings advanced by 1.56 percent, or P19 at P1,239 per share.
More than 1.5 billion issues, valued at P8.05 billion, were traded.
Losers outnumbered gainers, 96 to 90, while 58 issues kept unchanged.