Index eases as market takes wait and see stance

MANILA, Philippines - Stocks declined for the second straight day yesterday as investors stayed on the sidelines ahead of the US Federal Reserve’s meeting next week.

The Philippine Stock Exchange index slipped 0.54 percent or 36.49 points to settle at 6,763.62, while the broader all shares index retreated 0.44 percent or 18.12 points to 4,114.99.

“There were some pockets of profit taking but mainly, investors were just cautious ahead of the US Fed meeting next week,” Astro C. del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

“There were no fresh incentives to drive the market higher,” Del Castillo said.

Regional stocks did not provide positive leads as Asian stocks closed mixed. Japan’s Nikkei 225 sank 2.97 percent or 432.95 points to 14,129.98 on China’s order to close several factories while Hong Kong’s Hang Seng index inched up 0.31 percent or 67.99 points to 21,968.95.

On Thursday, Wall Street, which is in the midst of the earnings season, closed a tad higher. Blue chip Dow Jones industrial average picked up 0.1 percent or 13.37 points to 15,555.61 while the broader Standard & Poor’s 500 index gained 0.3 percent or 4.31 points to 1,690.25.

Del Castillo said the local market was lethargic, with turnover value falling to P5.63 billion from P7.57 billion on Thursday.

All counters, save for industrial companies that added 0.5 percent or 50.44 points to 10,085.16, were in the red. The decliners were led by the service sector that lost 1.26 percent or 25.84 points to 2,032.55.