The main index of the Philippine Stock Exchange (PSEi) ended on Wednesday, Aug. 20, flat as investors awaited the results of the Federal Reserve meeting before making any major moves.
The PSEi eked out a marginal gain of 0.2 points, or 0.003 percent, to close at 6,277.87. Sectoral indices were evenly split, with half posting gains and the other half declining. Volume was low at 1.07 billion shares valued at P5.76 billion. Market breadth was negative, as losers outnumbered gainers 110 to 86, while 49 issues remained unchanged.
“The PSEi ended flat as the market closed with investors seeking possible bargains after a series of declines in recent days,” said Luis Limlingan, Managing Director of Regina Capital Development Corp. “Moreover, many participants remained cautious, waiting for further developments from the Fed in the coming days that could solidify the market’s potential next move.”
Japhet Tantiangco, Research Manager at Philstocks Financial, noted that the local market “moved sideways, mostly in the positive territory as investors hunted for bargains following two consecutive days of decline.”However, he added, “Gains dissipated as confidence in the market remained weak amid lingering uncertainties and lack of positive catalysts. The tepid confidence was also reflected in the trading activity.”
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort said the PSEi was marginally higher after global crude oil prices declined to new 2.5-month lows. This came ahead of possible meetings between the Russian and Ukrainian presidents to work out a potential ceasefire deal through President Donald Trump.