PHILIPPINE STOCKS ended flat on Wednesday as investors stayed on the sidelines ahead of a trading break and the US Federal Reserve’s Jackson Hole symposium.
The bellwether Philippine Stock Exchange index (PSEi) edged up by 0.20 point to close at 6,277.87, while the broader all shares index inched down by 0.07% or 2.76 points to 3,735.14.
Philippine financial markets are closed on Aug. 21 (Thursday) for the Ninoy Aquino Day holiday.
“The local market moved sideways, mostly in the positive territory as investors hunted for bargains following two consecutive days of decline. Gains dissipated, however, as confidence in the market remained weak amid lingering uncertainties and lack of positive catalysts,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
The PSEi opened Wednesday’s session at 6,288.28, higher than Tuesday’s close, and even hit an intraday high of 6,301.50 before moving lower at the closing bell.
“The PSEi ended flat as the market closed with investors seeking possible bargains after a series of declines in recent days. Moreover, many participants remained cautious, waiting for further developments from the Federal Reserve in the coming days that could solidify the market’s potential next move,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The US central bank is holding its annual Jackson Hole gathering on Aug. 21-23, where Fed Chair Jerome H. Powell is set to make a speech and is expected to provide clues on their policy path moving forward.
Traders now place odds of about 85% on a quarter-point cut next month and expect about 54 basis points of reductions by yearend, Reuters reported.
US President Donald J. Trump said on Tuesday that Mr. Powell is “hurting” the housing industry “very badly” and repeated his call for a big cut to US interest rates.
The Fed’s next policy meeting will be held on Sept. 16-17.
Sectoral indices ended mixed on Wednesday. Services climbed by 1.65% or 37.07 points to 2,284.18; property rose by 0.52% or 12.71 points to 2,419.77; and industrials edged up by 0.03% or 2.75 points to 9,031.94.
Meanwhile, mining and oil declined by 1.63% or 157 points to 9,445.15; holding firms retreated by 1.57% or 83.95 points to 5,247.46; and financials decreased by 0.17% or 3.70 points to 2,114.54.
“Converge ICT Solutions, Inc. was the day’s top index gainer, jumping 4.43% to P14.62. DigiPlus Interactive Corp. was the main index laggard, falling 5.5% to P28.35,” Mr. Tantiangco said.
Value turnover dropped to P5.76 billion on Wednesday with 1.07 billion shares traded from P7.59 billion with 1.02 billion shares exchanged on Tuesday.
Decliners outnumbered advancers, 110 versus 86, while 49 names were unchanged.
Net foreign buying was at P161.83 million on Wednesday, a reversal of the P1.22 billion in net selling logged on Tuesday. — R.M.D. Ochave with Reuters