Connect with us

Hi, what are you looking for?


PSEi drops further after release of Fed minutes

PHILIPPINE SHARES declined further on Thursday as minutes of the US Federal Reserve’s June meeting supported expectations of further rate hikes this year.

The Philippine Stock Exchange index (PSEi) dropped by 38.13 points or 0.58% to 6,474.26 on Thursday, while the broader all shares index declined by 13.82 points or 0.39% to 3,455.93.

“The index fell as investors turned negative after a review of the minutes of the Federal Reserve’s June meeting reaffirmed the hawkish trajectory of US monetary policy,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

“The lack of sustained market strength even after the release of the Philippine June inflation print shows traders have already priced in the deceleration of domestic inflation and are looking for other news to drive stock prices,” Mr. Colet added.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message that market sentiment was affected by the minutes of the Fed’s meeting last month.

A united US Federal Reserve agreed to hold interest rates steady at the June meeting as a way to buy time and assess whether further rate hikes would be needed, even as the vast bulk expected they would eventually need to tighten policy further, according to meeting minutes released on Wednesday, Reuters reported.

While “some participants” wanted to move ahead with a rate hike in June because progress in cooling inflation had been slow, “almost all participants judged it appropriate or acceptable to maintain” the federal funds rate at the existing 5% to 5.25%, the minutes said.

Meanwhile, headline inflation slowed to 5.4% in June from 6.1% in May 2023 and June 2022, but marked the 15th straight month that the consumer price index exceeded the Bangko Sentral ng Pilipinas’ 2-4% target for the year.

For the first six months, inflation averaged at 7.2%, still higher than the central bank’s 5.4% forecast for 2023.

All sectoral indices declined on Thursday except for financials, which went up by 3.71 points or 0.2% to 1,842.45.

Meanwhile, property went down by 45.91 points or 1.73% to 2,597.75; services dropped by 15.93 points 1.01% to 1,555.90; holding firms fell by 30.15 points or 0.46% to 6,450.40; industrials declined by 9.16 points or 0.1% to 9,159.14; and mining and oil lost 4.66 points or 0.04% to end at 9,896.59.

Value turnover increased to P4 billion on Thursday with 745.77 million shares changing hands from the P3.82 billion with 522.37 million issues seen on Wednesday.

Decliners outnumbered advancers, 100 versus 73, while 51 names closed unchanged.

Net foreign selling rose to P99.41 million on Thursday from P22.2 million on Wednesday. — A.H. Halili with Reuters

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



In a surprising turn of events, Dame Sharon White, the CEO of John Lewis, has announced her resignation from the company. After just three...


By Luisa Maria Jacinta C. Jocson, Reporter MANUFACTURING ACTIVITY in the Philippines expanded in September, driven by resilient domestic demand and growth in new...


THE NATIONAL GOVERNMENT’S (NG) outstanding debt reached a record P14.35 trillion as of end-August, mainly due to the peso depreciation against the US dollar,...


THE WORLD BANK expects the Philippines to be the fastest-growing economy in Southeast Asia this year, despite trimming its gross domestic product (GDP) growth...


FINANCIAL INTEGRATION in the Association of Southeast Asian Nations (ASEAN) region could boost economic growth in the Philippines by about 3.5 percentage points (ppts),...


THE Philippine Stock Exchange, Inc. (PSE) said the guidelines on short-selling transactions are to take effect immediately after securing approval from government regulators. In...

You May Also Like

Top News

As the world seeks sustainable and energy-efficient solutions for heating and cooling, the heat pump market is experiencing a significant surge. According to the...


The Toto site’s user-friendly interface makes it easy for both beginners and experienced gamblers to navigate through the various features. “¸ÔÆ¢Æú¸®½º site is a...


Almost 100 jobs are thought to be under threat at smart home energy technology manufacturer myenergi. The Grimsby firm, named one of the UK’s...


JUNIOR FERREIRA-UNSPLASH The Philippines is a very small power market by ASEAN standards, with market demand peaking at 15 gigawatts (GW) compared to Thailand’s...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.