Both the local main stocks gauge and the peso ended Wednesday sideways partly on investors’ decision to stay on the sidelines at the start of the Federal Open Market Committee’s (FOMC) two-day policy meeting.
The Philippine Stock Exchange index (PSEi) slipped by 0.05 percent, or 3.38 points, to 6,973.35 points.
All Shares index also declined by 0.03 percent, or 1.08 points, to 4,221.890 points.
Most of the sectoral counters lost during the day, including the Mining and Oil, 1.97 percent; Industrial, 1.28 percent; Services, 1.03 percent; and Holding Firms, 0.57 percent.
The Financials index gained by 2.54 percent and Property by 0.58 percent.
Volume totaled 5.22 billion shares amounting to PHP10.71 billion.
Gainers led losers at 111 to 96, while 53 shares were unchanged.
“Consensus continues to expect the first hint about tapering in August or September, followed by a formal announcement in December and the start of tapering at the beginning of next year,” Luis Limlingan, Regina Capital Development Corporation head of sales, said referring to the outlook on the Federal Reserve’s next steps.
As of last March, FOMC officials expected interest rates to remain at their current zero to 0.25 percent level at least until 2023 as they continue to weigh the pace of economic recovery in the US.
The Fed is also expected to reduce its USD120 billion asset purchases starting in the third quarter this year, and economists said this will give a hint on the Fed’s rate decision.
“The best guess of the consensus is that the dots will not show a hike in 2023, but it is a close call,” Limlingan said.
Meanwhile, the peso ended the day at 48.09 from its 48.03 close the previous day.
It opened the day at 48.08 and traded between 48.19 and 48.05.
The average level for the day stood at 48.128.
Volume reached USD1.151 billion, down from the previous session’s USD1.158 billion.
Source: Philippines News Agency
