September 11, 2019
The stock market snapped a four-day rally as investors remained on the sidelines ahead of the monetary policy meetings of the European Central Bank (ECB) and Federal Reserve (Fed).
The bellwether Philippine Stock Exchange index (PSEi) slid by 0.39 percent or 30.64 points to 7,929.48, while the wider All Shares dropped by 0.27 percent or 12.86 points to end at 4,786.45.
“Philippine shares finally fell to negative territory with the broader market notching slight losses as investors looked ahead to ECB and Fed monetary policy moves,” Regina Capital Development Corp. head of sales Luis Limlingan said.
“Both central banks are expected to reveal easier-money initiatives in [the] coming days amid mixed global economic data and an uncertain future for US-China trade relations,” he added.
The ECB is preparing for a much-anticipated meeting on Thursday with speculation it would unveil fresh economy-boosting measures, including an interest rate cut deeper into negative territory.
The Fed, which is set to meet on September 17 and 18, is tipped to announce a further reduction in borrowing costs following weak jobs figures and signs of slowing economy.
Papa Securities sales associate Gabriel Jose Perez said the sideway trading of the local bourse was seen to continue because of lack of catalysts.
“Bias remains upward because of technicals however, with initial resistance pegged at 8,000,” he added.
On Wall Street, only the Dow Jones ended in the green, rising by 0.14 percent. Nasdaq and S&P 500 were down 0.19 percent and 0.01 percent, respectively.
In the region, Tokyo rose by 0.35 percent, Hong Kong inched up by 0.01 percent, Seoul increased by 0.62 percent and Singapore climbed by 0.31 percent.
Shanghai, Jakarta and Thailand, meanwhile, dipped by 0.12 percent, 0.07 percent and 0.41 percent, respectively.
In Manila, all sectors were mixed. Financials, services and mining and oil surged while the rest were down.
Volume was thinner at 613.73 million issues amounting to P5.22 billion.
Losers led winners, 92-91, while 56 issues were unchanged.
WITH A REPORT FROM AFP
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