Index eases ahead of Fed decision on stimulus

MANILA, Philippines - The local stock market ended flat yesterday as investors refused to make major buying decisions ahead of the conclusion of US Federal Reserve’s policy meeting.

The Philippine Stock Exchange eased 0.09 percent or 5.57 points to settle at 6,513.20 in a tight trading session that snapped a three-day climb. The broader all shares index shed 0.23 percent or 9.30 points to 4,022.12.

“The surge of buyers that marked the last three sessions tapered off a day ahead of the crucial Federal Reserve meeting – the fulcrum of global equity markets’ fate,” said Justino Calaycay Jr., analyst at Accord Capital Securities.

“With little hints after day one of the Fed meeting, investors may have opted to book profits earned from the market’s 6.6-percent, three-session advance,” Calaycay said.

The US Fed will announce its policy statement on Wednesday night, Manila time.

The local market bucked the trend in Wall Street, which was backed by increased home construction and benign inflation. The Dow Jones Industrial average added 0.9 percent or 138.38 points to 15,318.23.

Closer to home, Asian stocks were mixed, with Japan’s Nikkei 225 climbing 1.83 percent or 237.94 points to 13,245.22 while Hong Kong’s Hang Seng index slipped 1.11 percent or 235.19 points to 20,986.89.

Locally, most counters were in the red, led by mining and oil that shed 1.61 percent or 252.28 points to 15,415.65 but financial firms added 1.18 percent or 19.50 points to 1,670.05.

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