Share prices fell for the sixth straight session on Thursday, as investors digested the US Federal Reserve’s cautious tone and braced for rising global trade tensions.
The benchmark PSEi dropped 1.04 percent or 65.50 points to close at 6,252.73. The broader All Shares slid 1.05 percent or 39.68 points to 3,736.91.
Losers outnumbered gainers 134 to 61, while 56 stocks finished unchanged.
Trading value reached P7.85 billion on a total of 902.65 million shares across 73,322 trades.
Foreign investors ended as net buyers, with a net inflow of P228.54 million, buying P3.74 billion worth of shares, against P3.51 billion in sales.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said investors continued to react to global headwinds, especially as the US trade war rhetoric intensifies ahead of former President Donald Trump’s August 1 deadline for his tariffs to take effect.
“The local market dropped further as investors continued to deal with global trade uncertainties,” Tantiangco said.
“They also digested the outcome of the Federal Reserve’s latest meeting, where rates were kept steady and no clear guidance was given,” he added.
The Fed’s move to hold interest rates, coupled with a non-committal outlook, spurred caution across global markets.
Online brokerage 2TradeAsia.com said investors are currently assessing the signals on future Fed moves and awaiting Bangko Sentral ng Pilipinas’ next policy decision.
First Metro Securities noted that Fed Chair Jerome Powell’s guarded tone “dampened hopes for a September cut, reinforcing a risk-off tone despite the expected rate hold.”
Adding to the market pressure was the continued depreciation of the peso, Regina Capital Development Corp. managing director Luis Limlingan said, which added to overall investor caution.
