Despite the Federal Reserve (Fed) trimming rates, trading was still down on Thursday as market sentiments soured on the possibility that no further rate cut is seen for the rest of the year.
The benchmark Philippine Stock Exchange index (PSEi) dipped by 0.05 percent or 3.97 points to finish at 7,911.32, while the wider All Shares dropped by 0.07 percent or 3.47 points to end at 4,782.96.
“The local market in the second half of trading rallied, but failed to break above the previous close following the sentiments that the US Fed may not cut anymore rates for 2019,” brokerage firm Philstocks Financial, Inc. said in a market comment.
While the Fed met expectations with a 25-basis-point rate reduction, the lack of strong forward guidance disappointed many, who were also concerned about a growing split in the policy board between hawks and doves.
Equity traders have spent much of this month in a positive mood, betting that central banks are taking a more accommodative tone with monetary policy to support the stuttering global economy.
The Fed met on September 17 and 18.
Regina Capital Development Corp. head of sales Luis Limlingan agreed, saying: “It was another quiet session for the local market after the Federal Reserve cut its benchmark federal funds rate, in line with market expectations.”
The Dow Jones and S&P 500 were up 0.13 percent and 0.03 percent, respectively. Nasdaq slid 0.11 percent.
In Asia, Tokyo surged 0.65 percent, Shanghai climbed by 0.46 percent and Seoul was up 0.46 percent.
Hong Kong fell 1.07 percent, Jakarta was down 0.41 percent, Singapore decreased by 0.01 percent and Thailand dipped 0.45 percent.
In Manila, sectors were mixed. Financials, industrial and property were up while the rest fell.
Volume turnover stood at 453.91 million valued at P4.12 billion.
Losers led winners, 108-86, while 53 issues were unchanged.
WITH A REPORT FROM AFP