Stock market falls ahead of Fed meet


The Philippine stock market fell on Friday, tracking global markets, with investors said to be wary of the outcome of next week’s US Federal Reserve meeting.

The Philippine Stock Exchange index (PSEi) lost 1.36 percent or 85.59 points to close at 6,735.01, while the All Shares index also declined by 0.97 percent or 38.17 points to 3,894.86.

Joylin Telagen of IB Gimenez Securities said investors continued to be spooked over the prospect of a Fed rate hike, expected to be announced following a policy meeting on December 15 to 16.

“It’s still the US Fed meeting concerns, prompting foreign investors to sell,” Telagen said.

The PSEi, she said, could test the 6,600 support level if the Fed does raise interest rates. A postponement of the so-called “lift-off”, on the other hand, could allow the market to observe a Christmas rally.

Only property sub-sector increased on Friday, by 0.57 percent, while services led decliners with a 7.79 percent fall.

Total shares traded amounted to 731.26 million, valued at P6.72 billion. Losers outnumbered gainers, 111 to 49, while 50 issues were unchanged.


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