Index eases as market awaits Fed decision

MANILA, Philippines - The bellwether index snapped a two-day climb as investors await the US Federal Reserve’s decision on its easy money policy.

The Philippine Stock Exchange index slipped 0.16 percent or 10.18 points to 6,333.96, while the broader all shares index dropped 0.12 percent or 4.48 points to 3,833.33.

“Basically, the market was flat. Investors opted to stay at the sidelines ahead of the US Fed meeting,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

The market is concerned with how much the US Fed will cut its $85-billion monthly bond buyback program that has jacked up liquidity in financial markets, Del Castillo said.

Wall Street managed to eke out gains as investors remain hopeful that the tapering will not be deep. The US Fed’s decision will be made public Thursday Manila time.

The Dow Jones Industrial average picked up 0.23 percent or 34.95 points to 15,529.73, while the broader Standard & Poor’s 500 index rose 0.42 percent or 7.16 points to 1,704.76.

Asian markets closed mixed, with some betting on a modest tweak. Japan’s Nikkei 225 climbed 1.35 percent or 193.69 points to 14,505.36, while Hong Kong’s Hang Seng index slightly fell 0.27 percent or 63.07 points to 23,117.45.

Despite the possibility of a tapering, del Castillo said the main index will not fall hard this time around.