Local shares inched down Wednesday on profit taking as investors await the Federal Reserve’s policy move.

The Philippine Stock Exchange index (PSEi)  recorded a slight decline of 19.46 points or 0.27 percent, reaching a closing value of 7,155.90.

The broader all shares index also saw a minimal decrease, by 2.21 points or 0.06 percent.

The peso ended at 55.72, slightly weaker from 55.695 last Tuesday.

The currency opened at 55.8 and hit a  high of 55.865 and a low of 55.715.

Trading volume amounted to $1.23 billion.

“The PSEi snapped its two-day winning streak as traders awaited the Fed’s rate cut decision, with a 63 percent chance of a 50bp (basis point) cut,” Luis Limlingan of Regina Capital Development Corp., said.

“However, some investors are concerned a larger-than-expected cut could indicate underlying economic weakness,” he added.

Philstocks Financial research manager Japhet Tantiangco  said aside from taking a cautious stance while waiting for the Federal Reserve’s policy decision, last-minute profit taking sent the local market lower this Wednesday.

“Investors booked gains following the bourse’s two-day rally,” Tantiangco said.

Counters were mixed, with three sectors in the red, while the remaining half in green.

The financials index saw the biggest decline as it fell 0.66 percent. 

Others in the negative were services and the industrial sectors.

Meanwhile, mining and oil led the gains with a 1.83 percent increase.

The property and holding firms indexes were also in the positive as these inched up by 0.88 percent and 0.02 percent, respectively.

Total value turnover reached P6.14 billion. Advancers toppled decliners, 125 to 68, while 60 stocks were unchanged.