Index drops ahead of US Fed meeting

MANILA, Philippines - Share prices retreated yesterday as investors opted to stay on the sidelines awaiting for the latest policy statement of the US Federal Reserve.

The Philippine Stock Exchange index declined 1.32 percent or 88.88 points to settle at 6,639.12, while the broader all shares index

Grace Cerdenia, analyst at brokerage firm 2Trade-Asia.com, said some investors opted to wait for the release of the US Fed’s policy statement after the July 30-31 Federal Open Market Committee meeting.

“A mixed session occurred and trades were selective,” Cerdenia said, adding that several news like low interest rates and benign inflation were already factored in share prices.

Asian shares continued to be in the red, with Japan’s Nikkei 225 shedding 1.45 percent or 201.50 points to 13,668.32 while Hong Kong’s Hang Seng index fell 70.30 points to 21,883.66.

Wall Street, which was buoyed by strong earnings from companies like Goodyear Tire & Rubber and Eastman Chemical Co., closed mixed.

The Dow Jones industrial average slightly eased 0.01 percent or 1.38 point to 15,520.59 while the broader Standard & Poor’s 500 index inched up 0.04 percent or 0.63 point to 1,685.96.

Locally, all subindices were in the red, paced by property firms that sank 2.34 percent or 61.76 points to 2,580.69.

Decliners dominated advancers, 125 to 39, while 36 stocks did not change. The value of shares traded dropped to P7.13 billion from P7.26 billion on Tuesday.