The Philippine stock market dipped for a second day on Tuesday, as investors again took to the sidelines on uncertainty about a possible Fed rate hike next month, or opted to collect their gains from the bourse’s extended rally in March.
The benchmark Philippine Stock Exchange Index (PSEi) retreated by 0.82 percent or 60.12 points to end the trading day at 7,274.40, while the wider All Shares declined by 0.37 percent or 15.73 points to close at 4,202.10.
Niche Alicer, Chief Equity Strategist at DA Market Securities Inc. in a phone interview said that the market retreated on profit-taking as well as uncertainty regarding the Federal Reserve’s possible move on an increase in key rates come next month.
“The Fed’s move is up in the clouds. Hence, it creates a level of uncertainty for investors, and that is why some opted to profit-take. However, the consensus is still that the US would consider the overall welfare of the global economy. Thus, [interest rate]hikes could take place much later in the year,” Alicer said.
Total value turn over was low at P5.5 billion, with winners edging out losers, 115 to 97, while some 29 issues remained unchanged.
Almost all sub-indices ended in the negative territory led by holding firms shedding 1.13 percent, while the mining and oil sector managed to book growth of nearly a percent.