A wait-and-see stance on the release of the United States’ September 2021 consumer price index (CPI) and earnings report of major US-listed firms dragged the local main equities index on Wednesday but the peso gained against the greenback.
The Philippine Stock Exchange index (PSEi) turned negative towards the end of the session after it fell 0.55 percent, or 38.9 points, to 7,068.92 points.
All Shares followed with a decline of 0.38 percent, or 16.81 points, to 4,403.26 points.
Half of the sectoral counters tracked the main gauge, namely the Industrial, 1.80 percent; Holding Firms, 0.94 percent; and Services, 0.76 percent.
On the other hand, Mining and Oil rose by 2.55 percent, Financials by 1.29 percent, and Property by 0.56 percent.
Volume totaled 1.33 billion shares amounting to P11.93 billion.
Losers led gainers at 111 to 89, while 48 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation head of sales, said aside from the CPI and earnings report, analysts are also on the lookout for the Federal Reserve’s policy path given the scheduled release of the Federal Open Market Committee’s (FOMC) September 21-22 meeting minutes later in the day.
Another factor during the day’s equities trading is the lower-than-expected job openings in the US last August at 10.4 million from the upwardly revised 11.1 million in the previous month, he said.
He also cited the shortened curfew hours in the National Capital Region (NCR) starting October 13 to 12 a.m. to 4 a.m. from 10 p.m. to 4 a.m. previously as COVID-19 infections decline.
Asked if the latest cut in International Monetary Fund’s 2021 growth outlook for the Philippines from 5.4 percent to 3.2 percent has any impact on equities trading during the day, Limlingan said this is possible.
“Possible but minimal if ever because 2021 is coming to a close and investors are looking at 2022 prospects already,” he added.
Meanwhile, the peso gained against the US dollar after finishing the day at 50.655 from 50.85 a day ago.
It opened the trade at 50.82, sideways from its 50.86 start on Tuesday.
It strengthened to 50.6 but also moved to 50.83, resulting in an average of 50.688.
Volume rose to USD1.105 billion from the previous session’s USD757.87 million.*PNA