Stocks ease on lack of fresh leads

MANILA, Philippines – The local stock market retreated yesterday as investors continued to stay on the sidelines ahead of the US Fed meeting next week, analysts said.

The benchmark Philippine Stock Exchange index (PSEi) eased 4.26 points, or 0.08 percent, to finish at 7,546.01.

The broader All Shares index, meanwhile, gained 89.42 points or 1.95 percent to end at 4,663.29.

Philippine Stock Exchange (PSE) chief operating officer Roel Refran said market volatility is likely to continue until the Sept. 21 meeting of the US Fed.

Refran said the market would have more signals  after the Sept. 21 meeting.

The sectoral indexes were a mixed bag, with most closing in negative territory.

The PSEi was dragged down by the holding firms, services, mining and oil and property sectors.

Total value turnover reached P8.91 billion as decliners outnumbered advancing stocks, 110 to 50 while 67 stocks were left unchanged.

Victor Felix, equity analyst at AB Capital said the market was flat despite robust foreign outflow and the breadth was bearish.

“In terms of technicals, the index has breached the 7,550 and 7,500 level in trading and can again test these support levels tomorrow. Immediate and secondary resistance remain at 7,600 and 7,650, respectively,” Felix said.

Refran dismissed domestic issues such as President Duterte’s declaration of a State of Emergency and the spate of extrajudicial killings as reasons for the jitters.

He said the volatility was largely due to the upcoming meeting of the US Federal Reserve that is being closely watched by investors.