Cautious investors drag down index anew

MANILA, Philippines - Local stocks slipped for a third straight day yesterday with investors cautious before the release of US employment data that could provide hints to when the US Federal Reserve will raise interest rates.

The Philippine Stock Exchange index retreated  0.06 percent, or 4.25 points, to close the week at 7,118.2.  Investors were on edge as Fed policy makers appear to be keeping the possibility of a December rate hike alive.

Only the financials and property counters ended in green and was up by 1.13 percent and 0.27 percent, respectively.

The services sub-index continued to lead the fall (1.41 percent), followed by mining and oil (0.37 percent), industrial (0.11 percent), and holding firms (0.08 percent).

Market breadth was negative with losers outpacing gainers 94 to 59 and 57 remained unchanged.

A total of 793.62 million shares worth P6.52 billion  changed hands.

“Over, above and after discounting 3Q earnings, the “lift-off” continues to preoccupy the minds of investors. Every comment and statement of any member of the US Fed  and every economic data release will be scrutinized and turned-over in  search for stronger hints on when the Fed would finally decide to raise interest rates,” Accord Capital’s Jun Calaycay said.

Other potentially “market moving” releases that investors will carefully await include preliminary GDP (Nov. 24), and core PCE Price Index (Nov. 25).