Philippine stocks snapped their three-day rally on Wednesday as investors pocketed their gains ahead of the US Federal Reserve’s annual economic symposium.
The Philippine Stock Exchange index (PSEi) dropped by 0.63% or 44.14 points to end at 6,900.62 on Wednesday, while the broader all shares index dropped by 0.12% or 4.71 points to finish at 3,724.38.
“The local market closed lower this Wednesday by 0.63% to 6,900.62 on the back of profit taking. Investors booked gains after three consecutive days of rallying,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
“The local bourse also took cues from Wall Street’s decline wherein investors took a cautious stance while waiting for the Jackson Hole Economic Symposium where the Fed may give clues on their policy outlook,” he added.
Wall Street’s main indexes slipped in volatile trading on Tuesday, ahead of a symposium at Jackson Hole later this week and minutes from the Federal Reserve’s meeting last month which could offer clues on a September interest rate cut, Reuters reported.
The Dow Jones Industrial Average index dropped by 0.15% or 61.56 points to 40,834.97; the S&P 500 lost 0.2% or 11.13 points to 5,597.12; and the Nasdaq Composite went down by 0.33% or 59.83 points to 17,816.94.
Traders are looking forward to any hints from Fed Chair Jerome H. Powell of a rate cut at the upcoming Fed meeting in September when he delivers his speech at the annual economic symposium in Jackson Hole on Friday.
Odds for the Fed cutting interest rates by 25 basis points (bps) in September stand at 73.5%, compared with a near-even split between a 50- and 25-bp cut seen a week ago, according to the CME FedWatch Tool.
“Philippine shares succumbed to profit taking after hitting 7,000 intraday [on Tuesday] as investors started to keep to cash ahead of the long weekend,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Philippine financial markets will be closed on Friday (Aug. 23) for a special nonworking holiday in observance of Ninoy Aquino Day, which was moved from the original Aug. 21 date.
Almost all sectoral indices closed lower on Wednesday, with industrials being the lone gainer, rising by 0.14% or 13.12 points to 9,207.97.
Property dropped by 1.52% or 42.20 points to 2,722.89; financials went down 1.03% or 21.70 points to 2,070.22; mining and oil declined by 0.91% or 75.05 points to 8,161.14; services retreated by 0.22% or 5.05 points to 2,222.14; and holding firms decreased by 0.2% or 11.91 points to 5,841.26.
Value turnover declined to PHP 5.14 billion on Wednesday with 863.73 million issues changing hands from the PHP 8.09 billion with 673.38 million issues traded on Tuesday.
Market breadth was negative as decliners outnumbered advancers, 130 versus 78, while 49 issues closed unchanged.
Net foreign buying declined to PHP 565.27 million on Wednesday from PHP 2.06 billion on Tuesday. — Revin Mikhael D. Ochave with Reuters
This article originally appeared on bworldonline.com