PSEi down 1.70% as Fed meeting approaches

The local market returned to 6400 levels, down 111.35 points on Monday, to close at 6437.42.

According to analysts, investors remained on the sidelines as they were anticipating potentially aggressive rate hikes by the US Federal Reserve (Fed) and Bangko Central Philippines (BSP).

“Also, the broader balance of payments deficit outlook has weighed on sentiment as this could weaken the peso further. We now see support at 6400 while resistance holds at 6600,” said Claire Alvear, associate researcher at Philstox Financial. a company

“The PSEi Index is down for the fifth consecutive day of trading as the USD/Peso exchange rate, now at 57.40, is hovering near an intraday record high of 57.44 and a record closing high of 57.43 recorded on September 16, 2022, after the latest update. Michael Rycafort, chief economist at Rizal Commercial Banking Corp, agreed to raise transfer rates that could also drive up inflation.

In addition, the General Manager of Regina Capital Development Corp. Lewis Lemlingan notes that apart from the Fed’s policy meeting scheduled for Wednesday, there will be a large number of economic market data due this week, which includes the Housing Market Index of the National Association of Homebuilders. The home release and building permits are due on Monday, the existing home sales and FOMC statement on Wednesday, the initial jobless claims on Thursday, and the PMIs on Friday.

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The Monetary Council is holding its sixth policy setting meeting on September 22 with a number of other countries from Tuesday to Friday. Combined, these are expected to provide 500 basis points to raise prices worldwide.

Monday’s net worth of market capitalization was 4.48 billion pesos, as foreigners were net sellers, and amounted to 286.62 million pesos.

All sectors were in the red, led by a 2.67 percent drop with holding companies.

Losers outweighed the rising stocks, with their number 132 to 51, while 51 stocks remained unchanged.

San Miguel Corp. was on top, up 3.63 percent, while PLDT lost the most, dropping 5.14 percent.

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