The PSEi managed to close higher after sluggish trading during the day as investors continue to wait for news from the US Federal Reserve.
The main index eked out a gain of 13.76 points or 0.22 percent to close at 6,236.76 with Banks leading the advance while the Property sector lagged behind. Volume remained anemic at 325 million shares worth P3.83 billion as losers outnumbered gainers 100 to 75 with 41 unchanged.
“Local shares were bought as investors became wary of the US, as Walmart slashed its earnings forecasts, fueling concerns that consumer spending might not be strong enough to keep the U.S. out of the verge of recession,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “Investors are also awaiting a key announcement from the Fed. The central bank will announce its latest interest rate decision on Wed afternoon. Wall St. widely expects a three-quarter percentage point increase in the benchmark rate.”
Philstocks Financial Research and Engagement Officer Claire Alviar said “The local bourse was able to close in the green due to last-minute bargain hunting. 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.”
She noted that, “Most investors were also on the sidelines as they wait for the interest rate decision of the Federal Reserve.”