The Philippine stock market persisted on a downward track Thursday, tailing other Asian markets while desperately looking for fresh catalysts after failing to find one from the two-day US Federal Open Market Committee meeting.
The Philippine Stock Exchange index (PSEi) fell 110.65 points or 1.41 percent to 7,714.82, while the wider All Shares index lost 43.22 points or 0.96 percent to end at 4,453.
“Rich valuations, a lack of new catalysts and poor sentiment abroad” were the first factors mentioned by Bryan Gomez of Citisecurities Inc. when asked what dragged the market down to the 7,700-point level.
Gomez said the “first-quarter earnings have already been priced in by the market.”
“If things don’t improve, the 7,400 [next support]level is highly likely,” he added.
Earlier in the day at the end of its two-day policy meeting, the United States Federal Reserve left open its timeframe for a market-anticipated interest rate hike.
The Philippine central bank, commenting on the Fed decision after trading on the PSE has closed, warned of some volatility in the domestic financial markets, which he said, would continue to look for signals on when the Fed would begin a lift-off. (See story ‘Market volatility looms’ on B1)
All sectoral indices were down, led by services with a 2.03 percent loss.
Among the most actively traded stocks, decliners were led by Philippine Long Distance Telephone Company, Ayala Land Inc., BDO Unibank Inc., Ayala Corp., Alliance Global Group Inc., SM Prime Holdings Inc., SM Prime Holdings Inc., GT Capital Holdings Inc. and Jollibee Foods Corp.
Metropolitan Bank and Trust Company ended flat despite trading in positive territory during most of the session. Megaworld Corp. was the sole gainer among the most actively traded counters.
Total volume stood at 837.22 million shares, valued at P7.87 billion. Decliners outnumbered advancers 122 to 54, while 45 issues closed unchanged.
Today, Thursday, the local financial markets are closed for the Labor Day holiday.