PSEi drops 0.95% on US rate hike, PLDT earnings

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Philippine shares retreated on Thursday as investors took profit, wary of the likelihood of an interest rate increase in the US and the lower earnings posted by the country’s largest telecom player.

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The benchmark PSEi slipped by 0.95 percent or 72.60 to 7,589.95, while the wider All Shares closed lost 0.80 percent or 35.01 percent at 4,347.93.

Astro del Castillo, managing director at First Grande Finance Inc., said “the market is continuing to consolidate as investors are waiting for fresh incentives.”

The so-called “Ghost month” may also have an effect on the investor sentiment, he added.
“Investors will try to play safe, go for long-term accumulation, select stocks that have proven themselves,” Del Castillo noted.

Caylum Trading Institute President Edmund Lee said that the decline was a normal reaction of the market.

“There’s nothing really happening with the market right now. It’s been going sideways for the past few weeks, we just expect the same thing to happen,” said Lee.

However, IB Gimenez Securities Inc. research analyst Joylin Telagen said in a separate text message that the factor that affected trading was the disappointing earnings reported by Philippine Long Distance Company (PLDT) and the impending interest rate hike in the US, possibly this September.

More than 1,082 billion shares valued at P7.428 billion were traded. Decliners outnumbered Advancers 102 to 58, while 50 issues were unchanged.

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