Share prices ended mixed Wednesday as investors continued to stay on the sidelines awaiting the US Federal Reserve’s decision on a new rate hike.
The Philippine Stock Exchange index (PSEi) was up 13.76 points or 0.22 percent to 6,236.76.
The broader all shares index was up 5.59 points or 0.17 percent to 3,370.58.
Losers edged gainers 100 to 75 with 41 stocks unchanged. Trading turnover reached P3.83 billion.
The peso closed at 55.68 to the dollar, down from 55.30 on Tuesday.
The currency opened at 55.40 and hit a high of 55.37 and a low of 55.82. Trading turnover reached $1 billion.
Most Asian currencies weakened on Wednesday, as investors stayed cautious ahead of a key US Federal Reserve decision that could determine the path of policy tightening for the region’s central banks, Reuters reported.
The Fed is expected to announce a 75-basis-point interest rate hike to tackle inflation running at the fastest pace in four decades, but investors are wary of a surprise in either direction. Futures imply about a 15 percent chance of a 100-bp hike.
Focus will also be on the press conference by Fed Chair Jerome Powell for clues on future rises, amid concerns that aggressive tightening could tip the economy into a recession.
“Market reaction could be quite muted if we get the 75-bp hike as widely expected and don’t get a strong forward guidance,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
“If the Fed doesn’t pre-commit to another 75-bp hike in September, then Asian central banks are unlikely to be put in a position to react very quickly.”
Most Asian central banks, while still lagging the Fed, have begun to normalize their pandemic-era monetary policies. Most stock markets in the region reversed losses recorded in early trades.
Claire Alviar, analyst at Philstocks Financial Inc. said last-minute bargain hunting pushed the market to end in the green.
“During the intraday, the PSEi moved sideways, mostly in the red, following the negative sentiment from the US markets and due to a wider budget deficit in June,” Alviar said.
“Most investors were also on the sidelines, as they wait for the interest rate decision of the Federal Reserve,” she added.
Most actively traded Universal Robina Corp. was down P3.90 to P110. Bank of the Philippine Islands was up P0.50 to P87. Semirara Mining and Power Corp. was up P0.80 to P41. BDO Unibank Inc. was up P3 to P117. SM Prime Holdings Inc. was down P0.70 to P36.15. International Container Terminal Services Inc. was up P0.80 to P185. Globe Telecom Inc. was was down P28 to P2,100. PLDT Inc. was up P31 to P1,649. SM Investments Corp. was down P10 to P780. DMCI Holdings inc. was up P0.07 to P9.62.
