The PSEi lost the previous day’s gains as investors trade cautiously while waiting for the US Federal Reserve to announce the results of its ongoing meeting.

The main index dropped 34.69 points or 0.47 percent to close at 7,253.61 as Banks led the decline while the Mining and Oil counter bucked the trend and advanced. Volume improved to 1.5 billion shares worth P6.41 billion as losers beat gainers 102 to 78 with 60 unchanged.

“Philippine shares closed lower as investors remained restless about the ongoing Fed meeting and corporate earnings,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He noted that, “Officials are expected to signal their willingness to raise rates in March to battle surging inflation.”

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “Investors remain concerned over the possible aggressive monetary tightening in the US this year.”

On top of this, Limlingan said geopolitical tension at the Russia-Ukraine border continued to loom over global markets.

He added that, “Investors are also waiting for the release of fourth quarter GDP, which will be out tomorrow morning.

Tantiangco said “Sentiment also took a hit from inflation worries as BSP Governor Benjamin Diokno, in his open letter to President Rodrigo Duterte, said that inflation may remain elevated this 2022 due to the pork supply shortage and high global commodity prices.”