Index drops as market remains cautious ahead of US Fed meeting

Share prices closed 0.7 percent lower yesterday amid cautious trading just ahead of the US Federal Reserve’s decision on interest rates and a four-day holiday.

The Fed is likely to deliver a quarter-point cut at the conclusion of its two-day meeting Wednesday, but local markets will be closed for public holidays on Thursday and Friday with trading resuming on Monday.

The composite index was down 24.46 points at 3,758.97.

The broader all-share index fell 5.05 points or 0.2 percent to 2,349.83.

Gainers outnumbered decliners 58 to 44, while 57 stocks were steady.

Volume amounted to 3 billion shares worth P4.8 billion.

“Investors were cautious going into the long weekend. They chose to wait for the major catalyst, which is the Fed decision,” said Jose Vistan of AB Capital Securities.

Philippine Long Distance Telephone Co. (PLDT), the country’s biggest company by market value, fell P10 to P3,005.

Ayala Land Inc. retreated by P1 to P15 after police said the Oct. 19 explosion at one of the company’s malls that left 11 people dead was caused by an accident rather than a bomb.

“A portion of the mall has been closed for an indefinite period while the investigation is ongoing. That is already foregone revenue,” he said.

Rizal Commercial Banking Corp. rose P1 to P29. The country’s eighth-largest bank by assets said Wednesday it is acquiring  smaller Merchants Savings and Loan Association Inc. for P520 million.

Bank of the Philippine Islands (BPI), the country’s third-biggest bank, fell P2.50  to P65.50.

Oil refiner Petron Corp. rose 10 centavos to P7.

   Food and beverage group San Miguel Corp.’s A shares were steady at P59.50, while its B shares fell 50 centavos to P62.  — AFP