Index retreats on US tapering woes

MANILA, Philippines - Concerns over the US Federal Reserve’s tighter monetary policy pushed down local share prices for the fourth straight day.

The Philippine Stock Exchange index ended 0.27 percent or 16.01 points lower at 6,014.94. The broader all shares index fell 0.39 percent or 14.59 points to 3,688.47.

“The selling was due to worries about tapering that is still used as an excuse by the market,” Astro del Castillo, managing director of First Grade Finance Inc., said in a phone interview.

“The morning decline was because of the tapering issue,” said Abbygayle Estrella, equities analyst at AB Capital Securities Inc.

But last minute buying allowed the main index to remain at the 6,000 territory, Del Castillo said. The bellwether index hit an intraday low of 5,987.22.

Wall Street succumbed to more selling on Thursday given expectations that strong US economic data will encourage the Fed to cut back its stimulus program.

The Dow Jones industrial average lost 0.43 percent or 68.26 points to 15,821.51 while the broader Standard & Poor’s 500 index dropped 0.43 percent or 7.78 points to 1,785.03.

Most counters were in the red, paced by industrial companies that shed 0.66 percent or 57.97 points to 8,684.52. But the property sector managed to gain 0.64 percent or 14.86 points to 2,348.76.

Turnover value eased to P5.9 billion from P6.33 billion on Thursday. Decliners still outpaced advancers, 94 to 53, while 37 stocks did not change.

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