The Philippine Stock Exchange index (PSEi) continued to drop as investors cashed out prior to the midweek holiday while waiting for news from the US Federal Reserve.
The main index lost 48.57 points or 0.75 percent to close at 6,410.07 as the Services sector led the retreat. Volume remained weak at 400 million shares worth P3.3 billion as losers beat gainers 99 to 82 with 43 unchanged.
“The local bourse logged its third consecutive day of decline as investors locked in their gains ahead of the conclusion of the Fed policy and the latest US CPI reading,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “The meeting will conclude on Wednesday with an interest rate policy decision and a subsequent press conference featuring Federal Reserve Chair Jerome Powell.”
Philstocks Financial Research and Engagement Officer Mikhail Plopenio said “The local market dropped as investors digested the International Monetary Fund’s downward revision of its projection for the Philippines’ economic growth for this year after the slower-than-expected first quarter 2024 GDP data. The IMF’s new forecast was at 6.0 percent, lower than its 6.2 percent previous forecast.”
“Adding to the woes was the foreign outflow of P742.96 million as foreigners were net sellers during Tuesday’s session. Investors also took a cautious stance ahead of the local holiday,” he noted.