Share prices closed lower Wednesday on risk-aversion ahead of the US Fed rate decision overnight.
The peso closed up.
The Philippine Stock Exchange index was down 66 points, a 0.99 percent drop to 6,606.69.
The broader All Shares index was down 21.51 points or 0.61 percent to 3,525.18.
Losers edged gainers 91 to 86 with 56 stocks unchanged. Trading turnover reached $4.92 billion.
The peso closed at 55.335 to the dollar, up from 55.34 on Tuesday.
The currency opened at 55.34 and hit a high of 55.25 and a low of 55.41. Trading turnover reached $1.05 billion.
“We are seeing some spillover in Asia from overnight losses on Wall Street as US banking contagion risks linger,” said Christopher Wong, currency strategist at OCBC.
Major US stock indexes fell overnight on renewed fears over the financial system. The United States has seen three mid-sized bank failures so far this year, with First Republic Bank’s assets seized by regulators and sold to JPMorgan late on Monday.
Late on Wednesday, the Fed is expected to deliver a 25-basis point hike while investors watch out for signals of a pause.
Currencies in Asia marginally appreciated against the dollar.
Luis Limlingan, managing director at Regina Capital and Development Corp., said investors sold local stocks “on fears of a possible regional banking sector contagion ahead of the Fed’s rate decision.”
“Traders questioned the stability of smaller regional financial institutions after the crisis that engulfed Wall Street in March and brought about the end of SVB and First Republic Bank,” Limlingan said.
Claire Alviar, analyst at Philstocks Financial Inc., said investors also took to profit taking after a three-day hike of the market.
“Investors were also cautious while waiting for the decision of the Federal Reserve on interest rates as well as April’s inflation rate at home,” she said.
Most actively traded BDO Unibank Inc. was down P4.30 to P137.70. Security Bank Corp. was down P0.10 to P92.90. Robinsons Land Corp. was up P0.06 to P14.64. Ayala Land Inc. was down P0.10 to P27.40. PLDT Inc. was down P2 to P1,199. ACEN Corp. was up P0.03 to P6. Jollibee Foods Corp. was down P1.60 to P224. SM Investments Corp. was down P12 to P907. Bank of the Philippine Islands was down P2 to P108. SM Prime Holdings Inc. was down P0.50 to P33.45.
