PHILIPPINE STOCKS dropped further on Tuesday due to the absence of fresh leads, with investors looking ahead to the US Federal Reserve’s Jackson Hole symposium later this week, where US central bank officials could provide hints on their policy stance.
The Philippine Stock Exchange index (PSEi) dropped by 0.17% or 11.21 points to close at 6,277.67, while the broader all shares index slipped by 0.08% or 3.21 points to end at 3,737.90.
“The local market extended its decline as investors continued to exit amid the lack of a positive catalyst,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. “Investors are looking forward to the upcoming Jackson Hole Symposium for clues on the Fed’s policy outlook.”
“The market was weighed down by selling pressure as some investors may already be engaging in profit taking. At the same time, with no new catalysts in sight, others are likely adopting a more cautious stance while waiting for the next opportunity,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Markets are awaiting the US Federal Reserve’s annual symposium in Jackson Hole on Aug. 21-23 for any clues on the likely path of interest rates, Reuters reported. Fed Chair Jerome H. Powell is due to speak on the economic outlook and the central bank’s policy framework.
Analysts reckon that he is unlikely to lock himself onto a monetary path before seeing August’s round of data even though money market expectations of a rate cut next month remain above 80%, according to CME’s FedWatch tool.
The minutes of the Fed’s July 29-30 meeting are also due on Wednesday and could offer insight into policymakers’ thinking about the trajectory of interest rates albeit the meeting took place before a weak labor market report prompted markets to price in cuts more aggressively.
The Fed has kept its target rate at the 4.25%-4.5% range since December 2024.
Majority of sectoral indices closed lower on Tuesday. Services declined by 1.21% or 27.72 points to 2,247.11; industrials went down by 0.41% or 37.13 points to 9,029.19; property retreated by 0.21% or 5.26 points to 2,407.06; and financials decreased by 0.19% or 4.12 points to 2,118.24.
Meanwhile, holding firms rose by 0.86% or 45.82 points to 5,331.41, and mining and oil increased by 0.15% or 14.90 points to 9,602.15.
“DigiPlus Interactive Corp. was the day’s index leader, jumping 11.73% to P30. Converge ICT Solutions, Inc. was the main index laggard, falling 3.45% to P14,” Mr. Tantiangco said.
Value turnover climbed to P7.59 billion on Tuesday with 1.02 billion shares traded from the P6.18 billion with 746.65 million shares exchanged on Monday.
Decliners outnumbered advancers, 101 versus 86, while 63 names were unchanged.
Net foreign selling was at P1.22 billion on Tuesday, a turnaround from the P252.17 million in net buying on Monday. — Revin Mikhael D. Ochave with Reuters