PHILIPPINE STOCKS dropped further on Wednesday as sentiment turned negative after Wall Street posted losses overnight due to weak US economic data.

The bellwether Philippine Stock Exchange index (PSEi) inched down by 0.01% or 0.80 point to close at 6,882.12 on Wednesday, while the broader all shares index slipped by 0.03% or 1.26 points to end at 3,729.52.

“The local market closed in negative territory this Wednesday. The negative spillovers from Wall Street amid renewed concerns over the US economy’s health weighed on the market,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “The local bourse fell as low as 6,759.93 intraday but had its losses trimmed on the back of bargain hunting.”

“Philippine shares managed to recoup earlier losses after falling approximated 120 points to finish virtually the same as [Tuesday] session. Earlier in the morning, investors were rattled after US stocks tumbled on Tuesday as technology shares struggled, and fresh economic data reignited concerns about the economy’s health,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

US stocks slumped on Tuesday, at the start of one of the market’s historically worst months, ahead of data likely to influence how much the US Federal Reserve will lower interest rates, Reuters reported.

The benchmark S&P 500 index, Nasdaq Composite Index, and the Dow Jones Industrial Average recorded their biggest daily percentage declines since early August. The Dow fell 626.15 points or 1.51% to 40,936.93; the S&P 500 dropped 119.47 points or 2.12% to 5,528.93; and the Nasdaq Composite slid 577.33 points or 3.26% to 17,136.30.

Market sentiment weakened as Institute for Supply Management data on Tuesday showed US manufacturing remained subdued despite a modest improvement in August from an eight-month low in July.

Philippine shares mostly moved sideways before the release of August Philippine inflation data on Sept. 5 (Thursday), Mr. Limlingan added.

A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for August inflation, within the 3.2-4% forecast of the Bangko Sentral ng Pilipinas.

Sectoral indices were mixed. Industrials dropped by 1.02% or 94.74 points to 9,160.12; services retreated by 0.19% or 4.32 points to 2,169.35; and holding firms went down by 0.09% or 5.33 points to 5,739.21.

Meanwhile, financials rose by 0.98% or 20.80 points to 2,126.68; mining and oil went up by 0.28% or 22.89 points to 8,038.90; and property climbed by 0.1% or 2.79 points to 2,787.19.

Value turnover rose to P5.56 billion on Wednesday with 653.58 million shares changing hands from P5.08 billion with 699.6 million issues traded on Tuesday.

Decliners beat advancers, 113 versus 76, while 54 names were unchanged.

Net foreign buying rose to P145.73 million on Wednesday from P20.57 million on Tuesday. — R.M.D. Ochave with Reuters

The Philippine Stock Exchange index (PSEi) dropped by 0.58% or 40.49 points to end at 6,882.92 on Tuesday, while the broader all shares index fell by 0.55% or 20.63 points to close at 3,730.78.

“The local market declined this Tuesday as investors took profits after a two-day climb. The local currency’s depreciation against the dollar also weighed on the market,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Trading has been tepid as investors continue to wait for catalysts, primarily the Philippines’ August inflation data to be released this week,” he added.

The peso closed at P56.61 per dollar on Tuesday, slumping by 23 centavos from its P56.38 finish on Monday, according to Bankers Association of the Philippines data.

This was the local unit’s worst finish in more than two weeks or since it ended at P56.64 against the greenback on Aug. 19.

Meanwhile, the Philippine Statistics Authority will release August inflation data on Thursday (Sept. 5).

A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for the August consumer price index, within the central bank’s 3.2-4% forecast for the month.

“Philippine shares slipped into the red as investor await the return of foreign funds after the US was on holiday for the Labor Day weekend. US stock futures held steady Monday night as traders braced for a potentially challenging September after a volatile August,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“With markets closed for Labor Day, focus shifts to Friday’s August jobs report. Historically, September has been the worst month for the S&P 500 over the past decade,” he added.

Most sectoral indices closed lower on Tuesday, with holding firms being the lone gainer, rising by 0.11% or 6.54 points to 5,744.54.

Meanwhile, services dropped by 1.23% or 27.07 points to 2,173.67; financials declined by 0.77% or 16.54 points to 2,105.88; industrials went down by 0.6% or 55.85 points to 9,254.86; property decreased by 0.36% or 10.2 points to 2,784.40; and mining and oil retreated by 0.29% or 23.57 points to 8,016.01.

“Century Pacific Food, Inc. was the top index gainer, climbing 1.38% to P36.70. Wilcon Depot, Inc. was the main index loser, dropping 3.53% to P17.50,” Mr. Tantiangco said.

Value turnover rose to P5.08 billion on Tuesday with 699.6 million shares switching hands from the P4.89 billion with 555.41 million issues traded on Monday.

Decliners beat advancers, 109 versus 83, while 52 names were unchanged.

Net foreign buying dropped to P20.57 million on Tuesday from P419.29 million on Monday. — R.M.D. Ochave

PHILIPPINE STOCKS inched up on Monday, tracking US shares’ performance on Friday, on expectations that Philippine headline inflation slowed anew in August.

The Philippine Stock Exchange index (PSEi) rose by 0.37% or 25.87 points to end at 6,923.41 on Monday, while the broader all shares index went up by 0.23% or 8.60 points to close at 3,751.41.

“The local market rose this Monday as expectations that inflation declined last August compared to July’s 4.4% drove market sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Investors also took cues from Wall Street’s positive performance in last week’s close,” he said.

Headline inflation likely eased in August and returned within the central bank’s 2-4% target band amid a drop in prices of rice and fuel, analysts said.

A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for the August consumer price index, within the BSP’s 3.2%-4% forecast for the month.

If realized, this would be slower than the nine-month high of 4.4% in July, which also marked the first time since November 2023 that headline inflation exceeded the BSP’s 2-4% goal. This would also be below the 5.3% print recorded in August 2023.

Meanwhile, US markets closed higher on Friday. The Dow Jones Industrial Average Index improved by 0.55% or 228.03 points to 41,563.08; the S&P 500 Index surged by 1.01% or 56.44 points to 5,648.40; and the Nasdaq Composite Index climbed by 1.13% or 197.20 points to 17,713.63.

“Philippine shares got off to a lukewarm start for September despite several private and public institutions suspending work due to the heavy downpour,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Sentiment got a boost from the US as well, which saw their equity markets close in the green over the weekend,” Mr. Limlingan added.

Sectoral indices ended mixed on Monday. Holding firms climbed by 1.27% or 71.98 points to 5,738; services rose by 0.89% or 19.51 points to 2,200.74; and financials went up by 0.55% or 11.79 points to 2,122.42.

Meanwhile, mining and oil fell by 2.27% or 187.26 points to 8,039.58; property dropped by 0.97% or 27.62 points to 2,794.60; and industrials declined by 0.39% or 36.67 points to 9,310.71.

“JG Summit Holdings, Inc. led the market’s climb, jumping 3.62% to P24.35. Wilcon Depot, Inc. was at the tail end, falling 3.51% to P18.14,” Mr. Tantiangco said.

Value turnover dropped to P4.89 billion on Monday with 555.41 million shares changing hands from the P13.31 billion with 1.74 billion issues traded on Friday.

Advancers outnumbered decliners, 105 to 84, while 56 names closed unchanged.

Net foreign buying reached P419.29 million on Monday versus the P306.25 million in net selling recorded on Friday. — Revin Mikhael D. Ochave

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.08% or 5.99 points to end at 6,897.54, while the broader all shares index went up by 0.25% or 9.52 points to close at 3,742.81.

Week on week, the PSEi fell by 0.93% or 64.42 points from its 6,961.96 close on Aug. 22.

“Local equities took a breather after almost a month-long upward move ahead of the August inflation data release [this] week,” online brokerage firm 2TradeAsia.com said in a market note.

“Last week’s trading shows that the local market is having a difficult time getting past its 7,000 resistance level,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “On a positive note, the market has been maintaining its position above its 10-day exponential moving average.”

For this week, Philippine stocks may climb before the release of the August inflation report on Sept. 5 (Thursday), he said.

“The market could move with an upward bias on the back of expectations that the Philippines’ August inflation print would be lower than July’s 4.4%. Confirmation of the said expectations may also somehow give the market a boost on the latter part of the week,” he added.

A BusinessWorld poll of 15 analysts yielded a median estimate of 3.7% for the August consumer price index, within the BSP’s 3.2%-4% forecast for the month.

If realized, this would be slower than the nine-month high of 4.4% in July, which also marked the first time since November 2023 that headline inflation exceeded the BSP’s 2-4% goal. This would also be below the 5.3% print recorded in August 2023.

“Investors are also expected to take cues from other economic data, including the peso’s movement against the dollar, the S&P Global Philippines’ Manufacturing Purchasing Managers’ Index for August, and the Philippines’ labor force figures for July,” Mr. Tantiangco added.

He put the PSEi’s major support at 6,700-6,800.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail that the market’s resistance is at the 7,000 level, particularly the high of 7,070.72 posted on April 2.

“The underlying upward trend for more than three weeks already remains intact for as long as it remains above the immediate support at 6,635 to 6,705 levels,” he said.

2TradeAsia.com placed the PSEi’s immediate support at 6,800 and resistance at 7,000.

“Two-thirds into the year and at the tail end of the ghost month, the PSEi remained just beneath 7,000. Evolving geopolitical downside risks should provide additional short-term friction on top of supply pressure,” it said. “However, in the long run, lower interest rates mean cash returns are coming back to earth, and ultimately, the excess cash should find their way back home to equities.” — Revin Mikhael D. Ochave

PHILIPPINE SHARES dropped to the 6,800 level on Thursday, tracking Wall Street’s decline overnight, as investors continued to book profits before the month’s close.

The Philippine Stock Exchange index (PSEi) fell by 0.95% or 66.46 points to end at 6,891.55 on Thursday, while the broader all shares index dropped by 0.69% or 26.26 points to finish at 3,733.29.

This was the PSEi’s worst close in almost two weeks or since it finished at 6,889.87 on Aug. 19.

“The local bourse extended its decline amid continuous profit-taking after the market failed to break the 7,000 resistance,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Negative cues from Wall Street further weighed on the market, affecting Asian peers as well,” she added.

Asian shares followed Wall Street futures lower on Thursday as Nvidia’s results disappointed some bullish investors, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3% as tech stocks dragged. The Nikkei eased 0.2% while South Korea dropped 1%.

Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates, but the results still failed to impress the most bullish investors, who have driven a dizzying rally in its shares.

Wall Street’s main indexes finished lower on Wednesday. The Dow Jones Industrial Average fell 0.39% to 41,091.42; the S&P 500 lost 0.6% to 5,592.18; and the Nasdaq Composite lost 1.12% to 17,556.03.

“Philippine shares slipped just below the 6,900 level as investors sold ahead of the August closing and the MSCI rebalancing [on Friday],” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Sentiment also was pulled down from across the region, with US stocks dipping Wednesday, led by a decline in Nvidia Corp. as investors awaited its earnings report and the upcoming July personal consumption expenditures price index,” he added.

Majority of sectoral indices closed lower on Thursday. Holding firms retreated by 1.98% or 115.59 points to 5,717.44; financials dropped by 1.37% or 29.43 points to 2,104.28; services went down by 0.51% or 11.35 points to 2,201.47; and industrials declined by 0.1% or 10 points to 9,291.35.

Meanwhile, mining and oil climbed by 0.33% or 27.74 points to 8,263.42 and property increased by 0.13% or 3.72 points to 2,769.98.

“Among the index members, Ayala Land, Inc. led the gainers, up by 2.5%, while Converge ICT Solutions, Inc. was at the bottom, losing 4.29%,” Ms. Alviar said.

Value turnover increased to P6.64 billion on Thursday with 959.59 million issues changing hands from the P5.34 billion with 1.27 billion shares traded on Wednesday.

Decliners outnumbered advancers, 117 versus 79, while 51 names were unchanged.

Net foreign buying climbed to P888.76 million on Thursday from P687.06 million on Wednesday. — R.M.D. Ochave with Reuters

PHILIPPINE STOCKS slipped on Wednesday due to last-minute profit taking after the main index breached the 7,000 level intraday and following two consecutive days of gains.

The bellwether Philippine Stock Exchange index (PSEi) dropped by 0.22% or 15.40 points to end at 6,958.01 on Wednesday, while the broader all shares index fell by 0.04% or 1.73 points to close at 3,759.55.

The PSEi opened the session at 6,985.56, higher than Tuesday’s close of 6,973.41. It climbed to an intraday high of 7,016.04 but was unable to hold on to its gains, closing at its lowest level for the day.

“Late-day profit taking brought the local market down. Investors booked gains after the market climbed for two straight days. Chart-wise, the market retested but still failed to take its 7,000 resistance level,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Trading was “lethargic,” he added.

Value turnover declined to P5.34 billion on Wednesday with 1.27 billion shares changing hands from the P6.8 billion with 831.25 million issues traded on Tuesday.

“Investors are watching out for more economic data that will reinforce a potential rate cut in September. The prospect of easing monetary policy has many investors taking positions, reflecting broader market cautious optimism both locally and globally,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Investors are unanimous in bets that the US Federal Reserve will begin cutting interest rates next month following Fed Chair Jerome H. Powell’s dovish tilt last week, with the debate now centered on whether or not it will be a super-sized 50-basis-point (bp) cut, Reuters reported.

The current pricing sits at a 36% chance for the larger cut, up from 29% a week ago, according to the CME Group’s FedWatch Tool. Markets, which are fully priced for a 25-bp cut next month, see just over 100 bps worth of easing by the end of the year.

A preliminary estimate for US gross domestic product in the second quarter is due later this week, along with the core personal consumption expenditures index, the Fed’s preferred inflation measure.

Sectoral indices were mixed on Wednesday. Services went down by 0.73% or 16.29 points to 2,212.82; holding firms dropped by 0.53% or 31.36 points to 5,833.03; and property declined by 0.42% or 11.87 points to 2,766.26.

On the other hand, mining and oil rose by 0.85% or 69.48 points to 8,235.68; industrials went up by 0.69% or 63.73 points to 9,301.35; and financials climbed by 0.57% or 12.29 points to 2,133.71.

“Nickel Asia Corp. was the top index gainer, jumping 4.92% to P3.41. PLDT Inc. was the main index laggard, falling 3.14% to P1,511,” Mr. Tantiangco said.

Advancers outnumbered decliners, 99 versus 90, while 54 names were unchanged.

Net foreign buying declined to P687.06 million on Wednesday from P897.83 million on Tuesday. — R.M.D. Ochave with Reuters

PHILIPPINE SHARES inched up to a near five-month high on Tuesday after US Federal Reserve Chair Jerome H. Powell said they could begin their easing cycle next month.

The Philippine Stock Exchange index (PSEi) rose by 0.16% or 11.45 points to finish at 6,973.41 on Tuesday, while the broader all shares index improved by 0.3% or 11.55 points to end at 3,761.28.

This was the PSEi’s best close in nearly five months or since it ended at 6,979.81 on April 1.

“The PSEi followed global indices higher after Federal Reserve Chairman Powell said that the time has come for the Fed to adjust rates. However, profit taking kept the benchmark index below the key 7,000 level,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message.

“Investors cheered the Fed’s dovish signals as monetary policy easing by the Fed would give more room for the Bangko Sentral ng Pilipinas (BSP) to ease their policy, too,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Mr. Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the US central bank’s 2% target, Reuters reported.

With its policy rate currently in the 5.25%-5.5% range, the Fed has “ample room” to reduce borrowing costs to cushion the economy, Mr. Powell said.

Meanwhile, the BSP on Aug. 15 reduced its target reverse repurchase rate by 25 basis points (bps) to 6.25%. Prior to the cut, the Monetary Board kept the policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to combat elevated inflation.

BSP Governor Eli M. Remolona, Jr. said they could cut rates by another 25 bps within the year. The Monetary Board’s remaining policy-setting meetings this year are on Oct. 17 and Dec. 19.

“Philippine shares slowly inched towards the 7,000 level as investors start to rebalance ahead of both the MSCI and the end of month closing,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Majority of sectoral indices closed lower. Services declined by 0.4% or 8.95 points to 2,229.11; holding firms dropped by 0.33% or 19.45 points to 5,864.39; financials went down by 0.04% or 0.97 points to 2,121.42; and industrials slipped by 0.32 point to 9,237.62.

On the other hand, property surged by 2.71% or 73.54 points to 2,778.13; and mining and oil rose by 0.12% or 10.23 points to 8,166.20.

Value turnover slipped to P6.8 billion on Tuesday with 831.25 million shares changing hands from the P6.99 billion with 653.22 million issues traded on Thursday.

Advancers beat decliners, 110 versus 94, while 51 names were unchanged.

Net foreign buying went down to P897.83 million on Tuesday from P2.34 billion on Thursday. — R.M.D. Ochave with Reuters

The Philippine Stock Exchange index (PSEi) closed at 6,961.96 on Thursday, rising by 1.67% or 114.59 points from its 6,847.37 finish on Aug. 16 and marking its third consecutive weekly gain.

Philippine financial markets were closed on Aug. 23 (Friday) in observance of Ninoy Aquino Day and on Aug. 26 (Monday) for National Heroes Day.

“[This] week, the local market could still move with an upward bias. The monetary policy easing cues from the Federal Reserve in the Jackson Hole Economic Symposium are expected to drive positive sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“This is as Fed rate cuts are seen to give more room to the BSP (Bangko Sentral ng Pilipinas) to cut their policy rates too, thereby increasing the likelihood that they will continue with their monetary policy easing,” he said.

BSP Governor Eli M. Remolona, Jr. has said they could cut rates again within the year after the Philippine central bank this month slashed borrowing costs by 25 basis points, marking its first easing move in almost four years.

US Federal Reserve Chair Jerome H. Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the US central bank’s 2% target, Reuters reported.

“The time has come for policy to adjust,” Mr. Powell said in a highly anticipated speech to the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.”

With its policy rate currently in the 5.25%-5.5% range, the Fed has “ample room” to reduce borrowing costs to cushion the economy, Mr. Powell said.

“The strengthening of the local currency, if it continues, is also expected to give the market a boost,” Mr. Tantiangco added.

The PSEi may continue to test the 7,000 resistance level this week, he said. “If the market gets past and sustains ground above the said level, next resistance is seen at 7,100. Currently, major support is seen at the 6,700 to 6,800 range.”

For its part, online brokerage firm 2TradeAsia.com said in a market note that the market’s immediate support is at 6,800 and resistance is at 7,000-7,500.

“After dropping as low as 184 points (2.79%) for the month, the PSEi is up 7.94% year to date. This quarter’s MSCI rebalancing might cause friction in the near term, but the overall dovish shift in global rates should help sustain the PSEi’s ambition to breach 7,000,” it said.

“Everything is a cycle goes a quote, and markets are likely at the edge of a new one that resembles pre-pandemic conditions,” it added. — Revin Mikhael D. Ochave with Reuters

PHILIPPINE SHARES rallied last week, with the benchmark index returning to the 6,900 level for the first time in more than four months, with expectations of monetary easing at home and in the United States boosting sentiment.

The Philippine Stock Exchange index (PSEi) closed at 6,961.96 on Thursday, rising by 1.67% or 114.59 points from its 6,847.37 finish on Aug. 16 and marking its third consecutive weekly gain. Thursday’s close was also the PSEi’s best finish in more than four months or since it ended at 6,979.81 on April 1.

Philippine financial markets were closed on Aug. 23 (Friday) for a special nonworking holiday in observance of Ninoy Aquino Day, which was moved from the original Aug. 21 date. Markets will remain closed on Aug. 26 (Monday) for the National Heroes Day.

“The local market managed to extend its rally last week. It is noticed, however, that the bourse is having a difficult time getting past its 7,000 resistance level,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The PSEi ended at the 6,800 level on Aug. 19 to begin the shortened trading week amid market optimism after the Bangko Sentral ng Pilipinas (BSP) on Aug. 15 fired off its first rate cut in nearly four years and signaled at least one more reduction before yearend.

The market continued to climb in the following days to breach the 6,900 mark and even hit an intraday high of 7,005.27 intraday on Aug. 20 ahead of the US central bank’s annual economic symposium in Jackson Hole, Wyoming, where US Federal Reserve Chair Jerome H. Powell was set to speak on Friday and was expected to lay out their own rate cut path. Shares only closed in the red on Aug. 21 due to profit taking.

“Momentum carried the local bourse, stimulated by an earlier rate cut from the BSP. Momentum is on the side of the PSEi, getting impetus from the BSP’s ‘ahead of the Fed’ rate cut this month,” online brokerage firm 2TradeAsia.com said in a market note.

The PSEi was also boosted by US markets’ performance last week amid prospects of a September Fed rate cut, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail.

Wall Street and global shares jumped on Friday toward all-time highs, while Treasury yields slumped and the dollar languished, after a speech by Mr. Powell confirmed the United States would soon begin interest rate cuts, Reuters reported.

Mr. Powell, in remarks on Friday at the annual economic symposium in Jackson Hole, Wyoming, said “the time has come” to cut interest rates as rising risks to the job market left no room for further weakness and inflation was in reach of the Fed’s 2% target, offering an explicit endorsement of an imminent policy easing.

Traders increased bets for a bigger rate cut in September following Mr. Powell’s speech, with the fed funds futures now pricing in a 37% chance of a 50-basis-point (bp) cut next month, up from about 25% late on Thursday. Traders are also pricing in about 106 bps of cuts by the end of the year. — Revin Mikhael D. Ochave with Reuters

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.88% or 61.34 points to end at 6,961.96 on Thursday, while the broader all shares index went up by 0.68% or 25.35 points to close at 3,749.73.

Thursday’s close was the PSEi’s best finish in more than four months or since it ended at 6,979.81 on April 1.

“The local market bounced back this Thursday… Investors took cues from Wall Street’s rally overnight driven by the Federal Reserve’s July meeting minutes, which hinted at possible rate cuts by September,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Most Fed officials signaled that easing monetary policy would be appropriate if economic data meets expectations, raising hopes for lower interest rates soon. All eyes are now on Fed Chair Jerome H. Powell, who is set to speak at the Jackson Hole Economic Symposium on Friday, potentially offering further guidance on the Fed’s next steps,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The Fed appears to be very much on track for an interest rate cut in September after a “vast majority” of officials said such an action was likely, according to the minutes of the US central bank’s July 30-31 meeting, Reuters reported.

The minutes, which were released on Wednesday, even showed some policymakers would have been willing to reduce borrowing costs at last month’s gathering.

The policy-setting Federal Open Market Committee left its benchmark interest rate unchanged in the 5.25%-5.5% range on July 31, but opened the door to a cut at the Sept. 17-18 meeting.

Financial markets have been expecting the September meeting to kick off the Fed’s policy easing, with as much as a full percentage point worth of rate cuts expected by the end of this year.

Majority of sectoral indices closed higher. Financials rose by 2.52% or 52.17 points to 2,122.39; holding firms increased by 0.72% or 42.58 points to 5,883.84; services climbed by 0.71% or 15.92 points to 2,238.06; and industrials went up by 0.32% or 29.97 points to 9,237.94.

On the other hand, property declined by 0.67% or 18.30 points to 2,704.59; and mining and oil dropped by 0.06% or 5.17 points to 8,155.97.

Value turnover rose to P6.99 billion on Thursday with 653.22 million shares changing hands from the P5.14 billion with 863.73 million stocks traded on Wednesday.

Advancers beat decliners, 117 versus 80, while 43 names were unchanged.

Net foreign buying rose to P2.34 billion on Thursday from P565.27 million on Wednesday.

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. — R.M.D. Ochave with Reuters

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 P5.14 billion on Wednesday with 863.73 million issues changing hands from the P8.09 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 P565.27 million on Wednesday from P2.06 billion on Tuesday. — Revin Mikhael D. Ochave with Reuters

The Philippine Stock Exchange index (PSEi) rose by 0.79% or 54.89 points to finish at 6,944.76 on Tuesday, while the broader all shares index climbed by 0.61% or 22.64 points to end at 3,729.09.

This was the PSEi’s highest close in over four months or since it ended at 6,960.43 on April 2.

The index also breached the 7,000 level intraday, logging a high of 7,005.27 during the session.

“The local market climbed further this Tuesday… Expectations that the BSP will continue with its monetary policy easing moving forward, and positive cues from Wall Street continued to lift sentiment,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Philippine shares broke into the 6,900 level and now is just a stone’s throw away from the 7,000 level, with investors continuing to buy into strong earnings and the recent 25-basis-point (bp) cut…,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The BSP on Thursday cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook, with its governor signaling at least one more reduction before the end of the year.

The Monetary Board reduced its policy rate by 25 bps to 6.25%, as expected by nine out of 16 analysts surveyed in a BusinessWorld poll.

BSP Governor Eli M. Remolona, Jr. said at a briefing that they could cut rates by another 25 bps within the year. The Monetary Board’s remaining policy-setting meetings this year are scheduled for Oct. 17 and Dec. 19.

Analysts expect the BSP’s easing cycle to continue until next year amid stabilizing inflation, with at least 100 bps in cuts seen in 2025.

“Investors also cheered the balance of payment (BoP) surplus posted by the Philippines in July and the strengthening of the local currency,” Mr. Tantiangco added.

The country’s BoP position swung to a $62-million surplus in July from a $53-million deficit in the same period last year, BSP data showed.

Meanwhile, the peso closed at an over four-month high of P56.55 per dollar on Tuesday, up by nine centavos from Monday’s finish.

Sectoral indices were split. Financials rose by 2.54% or 51.84 points to 2,091.92; services increased by 2.13% or 46.57 points to 2,227.19; and holding firms went up by 0.22% or 13.12 points to 5,853.17. Meanwhile, industrials fell by 0.83% or 77.13 points to 9,194.85; property dropped by 0.83% or 23.39 points to 2,765.09; and mining and oil went down by 0.25% or 21.41 points to 8,236.19.

Value turnover rose to P8.09 billion on Tuesday with 673.38 million issues changing hands from the P7.64 billion with 625.66 million shares traded on Monday.

Decliners outnumbered advancers, 120 versus 89, while 51 names closed unchanged.

Net foreign buying surged to P2.06 billion on Tuesday from P1.41 billion on Monday. — RMDO

The Philippine Stock Exchange index (PSEi) rose by 0.62% or 42.50 points to end at 6,889.87 on Monday, while the broader all shares index gained by 0.4% or 15.03 points to close at 3,706.45.

Monday’s close was the PSEi’s best finish in over four months or since it closed at 6,960.43 on April 2.

“Investors continued to draw optimism from the Bangko Sentral ng Pilipinas’ (BSP) recent policy rate cut as well as the prospect of further monetary policy easing moving forward,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The Philippine stock market gained, buoyed by a favorable shift in both monetary policy and macroeconomic outlooks. As the earnings reporting season winds down, investors’ attention has turned to broader economic trends, which are currently shaping the market’s positive trajectory,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.

The Bangko Sentral ng Pilipinas (BSP) on Thursday cut benchmark interest rates for the first time in almost four years amid an improving inflation and economic outlook, with its governor signaling at least one more reduction before the end of the year.

The BSP slashed its target reverse repurchase rate by 25 basis points (bps) to 6.25%.

BSP Governor Eli M. Remolona, Jr. said at a briefing that they could cut rates by another 25 bps within the year.

“The positive spillovers from Wall Street’s performance last Friday driven by growing confidence on the United States economy also helped in [Monday’s] session,” Mr. Tantiangco added.

Back home, the majority of sectoral indices ended higher. Property rose by 1.55% or 42.69 points to 2,788.48; mining and oil went up by 1.42% or 115.74 points to 8,257.60; financials climbed by 1.41% or 28.41 points to 2,040.08; and services increased by 0.58% or 12.59 points to 2,180.62.

On the other hand, industrials declined by 0.5% or 46.89 points to 9,271.98; and holding firms fell by 0.14% or 8.56 points to 5,840.05.

Value turnover rose to P7.64 billion on Monday with 625.66 million shares changing hands from the P7.14 billion with 699.87 million issues traded on Friday.

Decliners beat advancers, 104 versus 94, while 54 issues were unchanged.

Net foreign buying rose to P1.41 billion on Monday from P654.36 million on Friday.

“The recent rally pushed the PSEi past the critical 6,800 resistance level. We are now eyeing the 7,000 psychological resistance… as the next target,” Mr. Vistan said. “This indicates a strong upward momentum that could propel the index further if macroeconomic conditions remain supportive.” — R.M.D. Ochave

On Friday, the Philippine Stock Exchange index (PSEi) rose by 2.3% or 154.46 points to end at 6,847.37, while the broader all shares index went up by 1.74% or 63.27 points to finish at 3,691.42.

Week on week, the PSEi climbed by 3% or 199.57 points from its 6,647.80 close on Aug. 9, marking its second consecutive weekly gain.

“Local equities surged, boosted by the Bangko Sentral ng Pilipinas’ 25-basis-point (bp) rate cut, the first in almost four years,” online brokerage firm 2TradeAsia.com said in a market note.

“The local market had a good run last week, with value turnover going above the year-to-date average. In the process, the market was able to get past its 6,700-6,800 resistance range,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The Monetary Board on Thursday reduced its target reverse repurchase rate by 25 bps to 6.25%.

This was the first time the BSP reduced rates since November 2020, when it delivered a 25-bp cut amid the coronavirus pandemic.

Prior to the cut, the BSP kept its policy rate at an over 17-year high of 6.5% for six straight meetings following cumulative hikes worth 450 bps between May 2022 and October 2023 to combat inflation.

“With inflation on a target-consistent path, the current macroeconomic outlook supports a calibrated shift to a less restrictive monetary policy stance,” BSP Governor Eli M. Remolona, Jr. said at a briefing.

Mr. Remolona said they could cut rates by another 25 bps this year. The Monetary Board’s remaining policy-setting meetings are scheduled for Oct. 17 and Dec. 19.

For this week, the market will continue to react to the BSP’s rate decision, Mr. Tantiangco said.

“With the BSP already going for one 25-bp rate cut, together with the prospect of more monetary policy easing moving forward, we may see the market climb further this week,” he said. “Easing recession worries in the United States are also expected to help the local bourse.”

Mr. Tantiangco said if the PSEi can remain at the 6,700-6,800 range, this would be its new support, while its next resistance is at 7,000.

“There is clear upward bias to market movements as rate cuts, locally and abroad, have turned in favor of risk assets. The dying out of the ‘higher-for-longer’ view on global interest rates may be the impetus the PSEi needs to approach 7,000 in the medium term,” 2TradeAsia.com said.

The online brokerage placed the market’s immediate support at 6,600 and resistance at 7,000.

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. — R.M.D. Ochave

PHILIPPINE SHARES inched lower on Thursday as investors pocketed profits from the market’s recent rally in anticipation of the Bangko Sentral ng Pilipinas’ (BSP) policy decision, which was announced near the end of the trading session.

The Philippine Stock Exchange index (PSEi) dropped by 0.18% or 12.05 points to finish at 6,692.91 on Thursday, while the broader all shares index slipped by 0.03% or 1.15 points to close at 3,628.15.

“Last-minute profit taking brought the local market down. Investors booking gains is seen as a cautious move while waiting for the BSP’s policy decision,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Chart-wise, the local market declined after hitting its resistance at the 6,700-6,800 range.”

“Philippine shares closed slightly lower as local traders anticipated the BSP’s policy decision. It was also announced a few minutes after closing that rates would finally be reduced by 25 bps (basis points) after much speculation from the market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

The BSP’s policy-setting Monetary Board on Thursday cut benchmark interest rates for the first time in nearly four years amid expectations of easing inflation.

The central bank reduced its target reverse repurchase rate by 25 bps to 6.25%, as expected by nine out of 16 analysts in a BusinessWorld poll conducted last week. This marked its first easing move since November 2020.

Prior to the cut, the BSP kept its policy rate at an over 17-year high of 6.5% since October 2023 following cumulative hikes worth 450 bps to combat inflation.

“With inflation on a target-consistent path, the current macroeconomic outlook supports a calibrated shift to a less restrictive monetary policy stance. Nonetheless, monetary authorities remain mindful of lingering upside risks to prices,” BSP Governor Eli M. Remolona, Jr. said in a briefing on Thursday. “Going forward, the Monetary Board will continue to take a measured approach in ensuring price stability conducive to balanced and sustainable growth of the economy and employment.”

Majority of sectoral indices closed lower on Thursday. Mining and oil dropped by 1.11% or 91.22 points to 8,128.17; financials went down by 0.77% or 15.30 points to 1,969.35; holding firms retreated by 0.47% or 27.71 points to 5,761.03; and industrials declined by 0.18% or 16.97 points to 9,149.18.

On the other hand, services climbed by 0.68% or 14.26 points to 2,102.48, and property rose by 0.01% or 0.47 points to 2,694.38.

Value turnover went down to P5.5 billion on Thursday with 462.44 million shares switching hands from the P6.96 billion with 670.22 million issues traded on Wednesday.

Advancers beat decliners, 103 versus 98, while 47 issues ended unchanged.

Net foreign buying dropped to P3.58 million on Thursday from P457.52 million on Wednesday. — Revin Mikhael D. Ochave

THE MAIN INDEX climbed to the 6,700 level on Wednesday, propped up by bargain hunting before the policy meeting of the Bangko Sentral ng Pilipinas (BSP), a strong peso, and positive spillovers from Wall Street overnight.

The bellwether Philippine Stock Exchange index (PSEi) rose by 0.82% or 54.52 points to end at 6,704.96 on Wednesday, while the broader all shares index climbed by 0.53% or 19.30 points to close at 3,629.30. This was the PSEi’s best close in almost three weeks or since it finished at 6,726.01 on July 26.

“Investors continued to bargain hunt ahead of the BSP meeting [on Thursday], while more economic data and corporate earnings continue to underscore that the economy continues to perform remarkably well,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

A BusinessWorld poll showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-basis-point (bp) rate cut at Thursday’s policy meeting, bringing the target reverse repurchase rate to 6.25% from the current over 17-year high of 6.5%, where it has been since October 2023.

On the other hand, seven others expect the BSP to keep rates steady. The Monetary Board last reduced rates in November 2020, when it delivered a 25-bp cut and brought the key rate to 2% to support economic recovery amid the coronavirus pandemic.

“The local market extended its rise this Wednesday, gaining 0.82%. The positive spillovers from Wall Street’s overnight rally driven by the US’ below-expected producer price index numbers gave a boost in [Wednesday’s] session,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The local currency’s recent strengthening against the US dollar also helped in sustaining the market’s upward movement,” Mr. Tantiangco added.

The peso inched up to P56.955 per dollar on Wednesday from P56.96 on Tuesday, according to Bankers Association of the Philippines data.

This was a new near four-month high for the local unit as it was its best finish since closing at P56.808 on April 15.

All sectoral indices closed higher on Wednesday. Property rose by 1.68% or 44.75 points to 2,693.91; mining and oil increased by 1.44% or 116.87 points to 8,219.39; industrials went up by 1.32% or 120.18 points to 9,166.15; holding firms jumped by 0.79% or 45.70 points to 5,788.74; services improved by 0.06% or 1.27 points to 2,088.22; and financials inched up by 0.02% or 0.44 point to 1,984.65.

Value turnover went up to P6.96 billion on Wednesday with 670.22 million issues changing hands from P4.98 billion with 607.05 million shares traded on Tuesday.

Decliners outnumbered advancers, 105 versus 98, while 54 issues were unchanged.

Net foreign buying rose to P457.52 million on Wednesday from P121.63 million on Tuesday. — R.M.D. Ochave

The Philippine Stock Exchange index rose by 0.56% or 37.08 points to end at 6,650.44 on Tuesday, while the broader all shares index improved by 0.31% or 11.46 points to finish at 3,610.

“The local market bounced back this Tuesday. The peso’s strengthening against the dollar has helped in lifting the market. Investors’ appreciation of second-quarter and first-half corporate results also helped in bringing the market up,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

On Tuesday, the peso closed at P56.96 per dollar, rising by 35.6 centavos from its P57.316 close on Monday, based on Bankers Association of the Philippines data.

This was the local unit’s best close in almost four months and was the first time it ended at the P56 level since its P56.808-a-dollar finish on April 15.

“Philippine shares rebounded, tracking their Asian peers, as investors continue to take positions ahead of the upcoming BSP (Bangko Sentral ng Pilipinas) meeting this Thursday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

A BusinessWorld poll conducted last week showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-basis-point (bp) rate cut at its meeting on Thursday (Aug. 15), bringing the target reverse repurchase rate to 6.25% from the current over 17-year high of 6.5%.

On the other hand, seven others expect the BSP to keep rates steady this week.

From May 2022 to October 2023, the BSP hiked borrowing costs by 450 bps.

“Meanwhile, Wall Street opened the week with choppy trading as investors awaited key inflation reports that could provide direction after last week’s volatility, driven by a weak jobs report and the unwinding of the yen carry trade,” Mr. Limlingan added.

Majority of sectoral indices closed higher on Tuesday. Property climbed by 1.69% or 44.13 points to 2,649.16; industrials went up by 0.56% or 50.70 points to 9,045.97; holding firms rose by 0.43% or 25.03 points to 5,743.04; and services inched up by 0.37% or 7.74 points to 2,086.95.

Meanwhile, mining and oil fell by 1.09% or 89.42 points to 8,102.52; and financials dropped by 0.18% or 3.66 points to 1,984.21.

“GT Capital Holdings, Inc. was the index’s top performer for the day, jumping 4.73% to P620. JG Summit Holdings, Inc. was the worst index performer, plunging 4.17% to P24.15,” Mr. Tantiangco said.

Value turnover climbed to P4.98 billion on Tuesday with 607.05 million shares changing hands from the P3.67 billion with 505.37 million issues traded on Monday.

Decliners beat advancers, 100 versus 81, while 64 issues were unchanged.

Net foreign buying dropped to P121.63 million on Tuesday from P205.66 million on Monday. — R.M.D. Ochave

The Philippine Stock Exchange index (PSEi) fell by 0.51% or 34.44 points to end at 6,613.36 on Monday, while the broader all shares index dropped by 0.26% or 9.70 points to finish at 3,598.54.

“The local market declined this Monday as investors took a cautious stance while waiting for the BSP’s policy meeting set this week,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message. “Investors are seen to be pricing in the possibility that the BSP will still hold policy rates unchanged in light of the recent inflation, labor market, and gross domestic product figures.”

“Trading was tepid… as many stayed out amid the uncertainties,” he added. Value turnover went down to P3.67 billion on Monday with 505.37 million shares changing hands from the P6.13 billion with 856.95 million issues traded on Friday.

A BusinessWorld poll conducted last week showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-basis-point (bp) rate cut at its meeting on Thursday (Aug. 15), bringing the target reverse repurchase rate to 6.25% from the current over 17-year high of 6.5%.

On the other hand, seven others expect the BSP to keep rates steady this week.

The last time the BSP reduced rates was in November 2020, when it delivered a 25-bp cut and brought the key rate to 2% to support economic recovery amid the coronavirus pandemic.

From May 2022 to October 2023, the BSP hiked borrowing costs by 450 bps.

“Philippine investors kept to cash as many awaited the latest results of the MSCI rebalancing which will be out later, while also waiting for the US to kick off their trading week,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“In addition, many will be making bets ahead of the BSP meeting on Thursday, as many are jostling what will be the Monetary Board’s stance with policy rates,” he added.

Almost all sectoral indices closed lower on Monday, with services being the lone gainer, rising by 1.29% or 26.59 points to end at 2,079.21.

Mining and oil dropped by 1.71% or 143.21 points to 8,191.94; holding firms retreated by 1.52% or 88.56 points to 5,718.01; financials went down by 0.6% or 12.01 points to 1,987.87; property declined by 0.52% or 13.75 points to 2,605.03; and industrials lost 0.28% or 25.29 points to close at 8,995.27.

“Of the index members, Century Pacific Food, Inc. was at the top, rising 2.79%. Nickel Asia Corp. was the worst performing index member for the day, plunging 5.07%,” Mr. Tantiangco said.

Market breadth was negative as decliners outnumbered advancers, 105 versus 79, while 52 names closed unchanged.

Net foreign buying rose to P205.66 million on Monday from P87.45 million on Friday. — R.M.D. Ochave

On Friday, the bellwether Philippine Stock Exchange index (PSEi) increased by 1.5% or 98.53 points to end at 6,647.80, while the broader all shares index rose by 1.01% or 36.10 points to finish at 3,608.24.

Week on week, the PSEi went up by 0.64% or 42.5 points from its 6,605.30 finish on Aug. 2.

“The local bourse recovered after an early week slump as attention moves to the BSP’s meeting,” online brokerage firm 2TradeAsia.com said in a market note.

“The local market bounced back last week after hitting its 6,400 support level, eventually ending the week with a 0.64% gain… However, trading has remained anemic, as seen in the thin value turnovers,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

For this week, the Philippine central bank’s rate-setting meeting on Aug. 15 (Thursday) will take the spotlight, Mr. Tantiangco said.

“A policy rate cut is expected to sustain the local market’s upward momentum, while an unchanged policy rate might lead to a market decline,” he added.

Analysts are divided on the Monetary Board’s rate decision this week as faster headline inflation in July caused BSP Governor Eli M. Remolona, Jr. to take a less dovish policy stance.

A BusinessWorld poll showed that nine out of 16 analysts surveyed expect the Monetary Board to deliver a 25-basis-point (bp) rate cut at Thursday’s review.

This would bring the target reverse repurchase rate to 6.25% and would be the first reduction in benchmark borrowing costs since November 2020, or during the coronavirus pandemic.

The BSP has kept its policy rate at an over 17-year high of 6.5% since October 2023 following cumulative hikes worth 450 bps.

Headline inflation accelerated to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority reported last week. This was slower than the 4.7% print in the same month a year ago and was within the BSP’s 4%-4.8% forecast.

However, this was the fastest in nine months or since the 4.9% clip in October 2023 and also marked the first time since November that inflation exceeded the BSP’s 2-4% annual target.

The Monetary Board is now “a little bit less likely” to cut rates at this week’s policy meeting following the worse-than-expected July inflation print, Mr. Remolona said after the data release.

“Investors are also expected to monitor the developments at Wall Street. A further easing of recession concerns is seen to help in lifting market sentiment while a worsening of the said concerns is expected to weigh on the market,” Mr. Tantiangco added.

He put the PSEi’s support at 6,400 and resistance at 6,700.

Meanwhile, 2TradeAsia.com placed the market’s immediate support at 6,400-6,500 and resistance at 6,800. — R.M.D. Ochave

STOCKS continued to climb on Thursday as sentiment got a boost from data showing that Philippine economic growth picked up in the second quarter (Q2).

The Philippine Stock Exchange index (PSEi) inched up by 0.21% or 14.10 points to end at 6,549.27 on Thursday, while the broader all shares index rose by 0.23% or 8.20 points to finish at 3,572.14.

“The local market rose as investors digested the second-quarter gross domestic product (GDP) data which posted an expansion of 6.3%, with strong growth numbers seen in government spending and investment,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“Many cheered the data as it is faster than the first quarter’s 5.8%. It also brought the average GDP growth in the first half to 6%, which is the government’s target for the year,” Mr. Plopenio added.

The government is targeting 6%-7% GDP growth this year. The economy will need to grow by at least 6% again this semester to meet this goal.

The PSEi extended its climb on continued bargain hunting, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Philippine shares bucked the trend of the US… US equities dipped on Wednesday as economic concerns, geopolitical conflicts, and the looming November elections kept investors on edge,” Mr. Limlingan said.

Wall Street equity indexes closed lower after Wednesday’s choppy session while a bond auction pushed Treasury yields higher and the dollar rose against the yen after cautious central banker comments, Reuters reported.

On Wall Street, the Dow Jones Industrial Average fell 234.21 points or 0.6% to 38,763.45; the S&P 500 lost 40.53 points or 0.77% to 5,199.50; and the Nasdaq Composite lost 171.05 points or 1.05% to 16,195.81.

MSCI’s gauge of stocks across the globe fell 0.35 points or 0.05% to 770.64 after earlier rising to a session high of 783.83.

At home, sectoral indices ended mixed on Thursday. Services rose by 0.89% or 17.99 points to 2,039.23; industrials went up by 0.82% or 73.39 points to 8,984.68; and holding firms climbed by 0.42% or 23.82 points to 5,681.54.

Meanwhile, property dropped by 0.59% or 15.50 points to 2,574.61; financials declined by 0.39% or 7.79 points to 1,972.91; and mining and oil fell by 0.27% or 22.25 points to 8,131.56.

“Among the index members, ACEN Corp. was at the top, rising 8.06% to P5.50. Bank of the Philippine Islands was at the bottom, dropping 2.17% to P117.20,” Mr. Plopenio said.

Value turnover dropped to P4.11 billion on Thursday with 748.38 million shares changing hands from the P4.91 billion with 543.36 million issues traded on Wednesday.

Advancers beat decliners, 106 versus 81, while 41 names closed unchanged.

Net foreign buying stood at P7.72 million on Thursday, a turnaround from the P511.99 million in net foreign outflows recorded on Wednesday. — Revin Mikhael D. Ochave with Reuters

The bellwether Philippine Stock Exchange index (PSEi) rose by 1.58% or 101.93 points to end at 6,535.17 on Wednesday, while the broader all shares index climbed by 1.22% or 43 points to finish at 3,563.94.

“The local market bounced as investors hunted for bargains after a three-day decline. Along with our regional peers, the bourse tracked Wall Street’s rebound overnight,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message. “Also, the strengthening of the local currency against the US dollar boosted sentiment.”

“Philippine shares made a furious comeback following the rally of Asian and US markets, as investors start to make bets ahead of the gross domestic product (GDP) release [on Thursday]. Wall Street snapped its three-day losing streak as investors took a break from recession fears, buoyed by a rally in Japanese equities,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Asian share markets extended their rally on Wednesday, led by another bounce in the Nikkei, as the Bank of Japan unexpectedly turned cautious on rate hikes amidst market volatility, which led to a sharp fall in the yen, Reuters reported.

The Nikkei’s 2.3% rise followed Tuesday’s 10% rally, suggesting investors were finding their footing after the recent market rout. The index slumped 13% on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan jumped 1.4%.

The S&P 500 and the Nasdaq ended 1% higher on Tuesday as investors jumped back into the market a day after a dramatic sell-off, with recent comments by US Federal Reserve officials easing US recession worries. The Dow rose as well, but all three major stock indexes pared gains heading into the close and ended well off their highs of the day.

Meanwhile, the peso ended at P57.515 per dollar on Wednesday, strengthening by 29.5 centavos from its P57.81 finish on Tuesday, Bankers Association of the Philippines data showed. This was its best close since the P57.465 on May 16.

All sectoral indices closed higher on Wednesday. Property gained by 3.25% or 81.52 points to end at 2,590.11; services went up by 1.9% or 37.82 points to 2,021.24; mining and oil jumped by 1.61% or 129.72 points to 8,153.81; industrials climbed by 1.24% or 109.48 points to 8,911.29; financials rose by 0.88% or 17.42 points to 1,980.70; and holding firms increased by 0.53% or 29.83 points to 5,657.72.

Value turnover went down to P4.91 billion on Wednesday with 543.36 million shares changing hands, from P5.12 billion with 419.01 million issues traded on Tuesday.

Advancers outnumbered decliners, 98 versus 81, while 54 names were unchanged.

Net foreign selling dropped to P511.99 million on Wednesday from P635.78 million on Tuesday. — R.M.D. Ochave with Reuters

THE BELLWETHER INDEX inched lower on Tuesday due to last-minute profit taking and faster-than-expected July inflation.

The Philippine Stock Exchange index (PSEi) slipped by 0.02% or 1.49 points to end at 6,433.24 on Tuesday, while the broader all shares index rose by 0.12% or 4.47 points to finish at 3,520.94.

“The local bourse inched down… as investors took profits at the last minute. The market was initially trading in the green due to bargain hunting after Monday’s steep decline. However, a surge of last-minute profit taking pushed the market into negative territory,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

Wall Street’s decline overnight due to US recession fears and the pickup in Philippine headline inflation last month clouded investor sentiment, Mr. Plopenio said.

“Philippine shares ended with flat performance despite a strong rebound early morning as the investors continue to monitor economic data in both US and Japan especially for signs of a global recession,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Major US stock indexes ended sharply lower on Monday as US recession worries shook global markets and drove investors out of risky assets, Reuters reported. The recession concerns followed weak economic data last week, including Friday’s soft US payrolls report.

The S&P 500 lost 160.23 points or 3% to end at 5,186.33 points; while the Nasdaq Composite lost 576.08 points or 3.43% to 16,200.08. The Dow Jones Industrial Average fell 1,033.99 points or 2.6% to 38,703.27.

Meanwhile, headline inflation accelerated to a nine-month high of 4.4% in July from 3.7% in June, the Philippine Statistics Authority reported on Tuesday.

This was slower than the 4.7% print in the same month a year ago and was within the Bangko Sentral ng Pilipinas’ (BSP) 4%-4.8% forecast for the month.

However, this was higher than the 4% median estimate in a BusinessWorld poll of 15 analysts conducted last week and was the fastest in nine months or since the 4.9% clip in October 2023.

For the first seven months, inflation averaged 3.7%, above the BSP’s 3.3% forecast for the year.

Sectoral indices were mixed on Tuesday. Mining and oil dropped by 1.75% or 143.46 points to 8,024.09; industrials retreated by 0.54% or 47.92 points to 8,801.81; and financials went down by 0.15% or 3.11 points to 1,963.28.

Meanwhile, property increased by 0.6% or 14.99 points to 2,508.59; services rose by 0.38% or 7.58 points to 1,983.42; and holding firms went up by 0.09% or 5.44 points to 5,627.89.

Value turnover dropped to P5.12 billion on Tuesday with 419.01 million shares changing hands from the P5.64 billion with 638.56 million issues traded on Monday.

Decliners outnumbered advancers, 97 versus 84, while 56 names were unchanged.

Net foreign selling climbed to P635.78 million on Tuesday from P621.93 million on Monday. — R.M.D. Ochave with Reuters

THE MAIN INDEX sank to the 6,400 level on Monday, hitting an over one-month low, as weak US jobs data stoked recession fears in the world’s largest economy.

The bellwether Philippine Stock Exchange index (PSEi) fell by 2.58% or 170.57 points to close at 6,434.73 on Monday, while the broader all shares index dropped by 2.23% or 80.43 points to finish at 3,516.47.

This was the PSEi’s worst close since it ended at 6,358.96 on July 2.

“Philippine shares fell back to the 6,400 territory as recession fears surrounding the US made investors worry over a hard landing,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Together with other Asian markets, the local bourse closed at 6,434.73, tumbling by 170.57 points (2.58%), as the disappointing jobs report raised fears that the Federal Reserve’s decision to keep interest rates unchanged could lead to a recession in the US,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar likewise said in a Viber message.

Stock markets tumbled on Monday and Japanese shares plummeted a gut-wrenching 13% as fears the United States could be heading for recession sent investors rushing from risk while wagering that rapid fire rate cuts will be needed to rescue growth, Reuters reported.

Japan’s Nikkei shed a staggering 13% to hit seven-month lows, a scale of losses not seen since the 2011 global financial crisis. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 4.2%.

The worryingly weak July payrolls report saw markets price in a 78% chance the US Federal Reserve will not only cut rates in September, but ease by a full 50 basis points.

“Sentiment was further dampened as the inflation rate in July could potentially be higher than the preceding month’s figure,” Ms. Alviar added.

A BusinessWorld poll of 15 analysts yielded a median estimate of 4% for the July consumer price index. This matched the lower end of the Bangko Sentral ng Pilipinas’ forecast.

If realized, July inflation would be faster than 3.7% in June but slower than 4.7% a year earlier.

The Philippine Statistics Authority will release July inflation data today (Aug. 6).

All sectoral indices closed lower on Monday. Industrials dropped by 3.52% or 323.61 points to 8,849.73; property declined by 3.34% or 86.39 points to 2,493.60; mining and oil went down by 2.64% or 221.73 points to 8,167.55; holding firms slumped by 2.44% or 140.63 points to 5,622.45; financials retreated by 2.21% or 44.56 points to 1,966.39; and services lost 1.29% or 25.99 points to end at 1,975.84.

Value turnover rose to P5.64 billion on Monday with 638.56 million shares changing hands from the P4.98 billion with 529.96 million issues traded on Friday.

Decliners overwhelmed advancers, 175 versus 34, while 45 names were unchanged.

Net foreign selling climbed to P621.93 million on Monday from P189.04 million on Friday. — R.M.D. Ochave with Reuters

On Friday, the bellwether Philippine Stock Exchange index (PSEi) fell by 1.32% or 88.53 points to end at 6,605.30, while the broader all shares index retreated by 0.88% or 32.28 points to finish at 3,596.90.

Week on week, the PSEi dropped by 1.79% or 120.71 points from its 6,726.01 close on July 26.

“The local market extended its decline to a second week, shedding 1.79% after failing to take its 6,700-6,800 resistance range,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“On a positive note, the market remains above its 50-day and 200-day exponential moving averages. Trading remains tepid, however, as many are still on the sidelines,” he added.

For this week, Philippine stocks may rise on bargain hunting amid expectations of lower borrowing costs, Mr. Tantiangco said.

“Growing hopes of monetary easing in the Philippines and the United States soon following recent dovish cues from both the BSP and the Federal Reserve may help the market climb this week,” he said. “However, the recession fears in the US, if it lingers this week, are seen as a downside risk to the local bourse.”

BSP Governor Eli M. Remolona, Jr. last week said that they could cut benchmark rates by 25 basis points (bps) at their Aug. 15 meeting, and by another 25 bps later in the year.

The BSP has kept its policy rate at a 17-year high of 6.5% since October 2023.

Meanwhile, employers added just 114,000 jobs in July, the US Labor department reported, and the unemployment rate rose to 4.3%, from 4.1% in June, marking an unexpected deterioration in a labor market that had held up surprisingly well during the US Federal Reserve’s aggressive rate-hike campaign in 2022 and 2023, Reuters reported.

The data prompted traders to pile into bets that the Fed will deliver a half-percentage-point rate cut at its Sept. 17-18 meeting, and drive borrowing costs down further from there, with the policy rate expected to end 2024 in the 4%-4.25% range.

“Investors may also take cues from our upcoming macroeconomic data including the July inflation rate, June labor force survey, and second-quarter gross domestic product. Investors are also expected to continue monitoring corporate results,” Mr. Tantiangco said.

“Philippine inflation to be released on Aug. 6 is expected to pick up in July from 3.7% in June, largely due to massive damage by Typhoon Carina, though offset by lower tariffs that effectively provided a 20% discounted on imported rice,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail.

For its part, online brokerage 2TradeAsia.com said in a market note that the PSEi’s immediate support is at 6,600-6,650 and resistance is at 6,900. — Revin Mikhael D. Ochave with Reuters

The Philippine Stock Exchange index (PSEi) went up by 1.12% or 74.74 points to end at 6,693.83 on Thursday, while the broader all shares index climbed by 0.87% or 31.47 points to finish at 3,629.18.

“The local market rose as investors took positive cues from Wall Street overnight as the Fed signaled that a rate cut in September could be possible. A rate cut by the Fed is seen to somehow give more room for the Bangko Sentral ng Pilipinas to ease its own policy,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

“Philippine shares started the month with bargain hunting following the sentiment of Fed meeting. Gains were influenced by Fed Chair Jerome H. Powell signaling the possibility of an interest rate cut at the next meeting if data continues to show easing inflation,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Powell said on Wednesday interest rates could be cut as soon as September if the US economy follows its expected path, putting the central bank near the end of a more than two-year battle against inflation but square in the middle of the nation’s presidential election campaign, Reuters reported.

The Fed ended its latest two-day policy meeting with a decision to hold its benchmark interest rate steady in the 5.25%-5.5% range that was set a year ago, but its statement softened the description of inflation and said the risks to employment were now on a par with those of rising prices — neutral language that opens the door for rates to fall after more than two years of tightening credit.

Mr. Powell pushed the message even further forward in his post-meeting press conference, noting that price pressures were now easing broadly in the economy — what he called “quality” disinflation — and that if coming data evolves as anticipated, support for cutting rates will grow.

Investors saw Mr. Powell’s comments as clearly setting the stage for a reduction in borrowing costs at the Fed’s Sept. 17-18 meeting.

All sectoral indices ended higher on Thursday. Financials gained by 2.75% or 54.75 points to end at 2,045.02; mining and oil increased by 1.7% or 141.70 points to 8,463.79; property went up by 1.34% or 34.68 points to 2,608.93; services climbed by 1.23% or 24.91 points to 2,042.16; holding firms rose by 0.31% or 18.06 points to 5,794.83; and industrials added 0.06% or 5.66 points to close at 9,274.82.

Value turnover fell to P4.39 billion on Thursday with 449.8 million shares changing hands from the P5.62 billion with 421.19 million issues traded on Wednesday.

Advancers beat decliners, 104 versus 75, while 50 issues ended unchanged.

Net foreign selling rose to P42.78 million on Thursday from P19.79 million on Wednesday. — R.M.D. Ochave with Reuters

The Philippine Stock Exchange index (PSEi) rose by 0.19% or 12.73 points to end at 6,619.09 on Wednesday, while the broader all shares index gained by 0.27% or 9.94 points to close at 3,597.71.

“Along with our Asian peers, the local bourse gained as investors bought bargains after the two consecutive days of market decline,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“Investors were also awaiting the Fed’s meeting to gauge the future direction of interest rates and to know how dovish the Fed’s stance might be,” she added.

Asian indexes ended higher on Wednesday after the Bank of Japan raised interest rates in a mostly unexpected hawkish pivot, sparking gains for the Japanese yen, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan added over 1%, with Japan’s benchmark Nikkei closing up 1.5% at its highest for a week.

A Federal Reserve rate decision is due later in the day, with markets expecting the US central bank to stand pat on rates but indicate cuts are on the way.

Markets are fully pricing in a Fed rate cut of 25 basis points (bps) in September, with roughly 68 bps of easing priced in for the year.

“Philippine shares closed modestly higher following consecutive sessions of profit taking to close the month of July. Price action got a boost from Wall Street as traders rotated out of mega-cap technology stocks and braced for the Fed’s monetary policy decision,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

“According to CME’s FedWatch Tool, Fed funds futures indicate a strong likelihood that central bankers will keep rates steady at the 5.25% to 5.5% range. However, traders will primarily be watching for any hints from [Fed Chair Jerome H.] Powell about potential rate cuts in the near future,” he said.

Almost all sectoral indices closed higher, with property being the lone decliner, dropping by 1.24% or 32.37 points to 2,574.25.

Meanwhile, mining and oil rose by 1.66% or 136.23 points to 8,322.09; industrials increased by 0.98% or 90.02 points to 9,269.16; services went up by 0.8% or 16.10 points to 2,017.25; holding firms added 0.38% or 22.20 points to end at 5,776.77; and financials climbed by 0.07% or 1.55 points to 1,990.27.

“Among the index members, ACEN Corp. was at the top, increasing by 4.77%, while Wilcon Depot, Inc. was at the bottom, losing 2.23%,” Ms. Alviar said.

Value turnover rose to P5.62 billion on Wednesday with 421.19 million shares changing hands from the P4.63 billion with 739.53 million issues traded on Tuesday.

Advancers beat decliners, 92 to 86, while 63 issues were unchanged.

Net foreign selling went down to P19.79 million on Wednesday from P607.78 million on Tuesday. — R.M.D. Ochave with Reuters

The Philippine Stock Exchange index (PSEi) fell by 0.64% or 42.87 points to end at 6,606.36 on Tuesday, while the broader all shares index dropped by 0.48% or 17.56 points to close at 3,587.77.

“The local market dropped as investors worry over the local currency, which has been showing signs of weakening against the dollar,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

The peso closed at P58.645 per dollar on Tuesday, down by 13.4 centavos from its P58.511 finish on Monday, based on data from the Bankers Association of the Philippines. This marked its weakest close in almost a month or since its P58.725-per-dollar finish on July 3.

“The Department of Budget and Management’s projection that the national debt will increase by 8.08% year on year to P17.35 trillion by end-2025 weighed on sentiment,” Mr. Plopenio added.

The bulk of the projected end-2025 total will come from outstanding domestic debt, which is seen to increase by 9.64% to P11.98 trillion from P10.92 trillion by end-2024.

Outstanding external debt is also forecasted to climb by 4.76% to P5.38 trillion by end-2025 from P5.13 trillion by end-2024.

“Philippines shares closed near the 6,600 mark following the mixed session of the United States as fund managers continue to sell before the closing of the month, which saw July rise substantially,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“The Fed’s two-day meeting begins Tuesday, where Fed Chief Jerome H. Powell may signal upcoming rate cuts. Investors are awaiting the Fed meeting, which could influence the Bangko Sentral ng Pilipinas’ rate decision,” he added.

Majority of sectoral indices closed lower on Tuesday. Financials dropped by 1.61% or 32.65 points to 1,988.72; property declined by 1.28% or 33.94 points to 2,606.62; mining and oil retreated by 0.81% or 67.41 points to 8,185.86; and holding firms went down by 0.65% or 37.67 points to 5,754.57.

Meanwhile, services rose by 0.54% or 10.92 points to 2,001.15, and industrials went up by 0.05% or 4.64 points to 9,179.14.

“Among the index members, Alliance Global Group, Inc. was at the top, climbing 3.13% to P8.90. Ayala Land, Inc. lost the most, dropping 2.91% to P30.05,” Mr. Plopenio said.

Value turnover fell to P4.63 billion on Tuesday with 739.53 million shares changing hands from the P5.06 billion with 658.32 million issues traded on Monday.

Decliners outnumbered advancers, 118 versus 74, while 43 names were unchanged.

Net foreign selling rose to P607.78 million on Tuesday from P500.34 million on Monday. — Revin Mikhael D. Ochave

The bellwether Philippine Stock Exchange index (PSEi) fell by 1.14% or 76.78 points to end at 6,649.23 on Monday, while the broader all shares index dropped by 0.68% or 24.77 points to close at 3,605.33.

“The local bourse lost due to the lack of a strong catalyst. Foreign investors weighed on the market,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

Net foreign selling totaled P500.34 million on Monday, a reversal of the P78.98 million in net buying recorded on Friday.

“Investors were waiting for the Federal Reserve meeting, which could influence the Bangko Sentral ng Pilipinas’ (BSP) decision regarding interest rates. Chart-wise, the market’s resistance was still pegged at 6,700-6,800, and it seemed the market is struggling to break and stay above this level,” Ms. Alviar added.

The Fed is widely expected to keep its target rate at the current 5.25%-5.5% range for the eighth straight time at their July 30-31 meeting.

After a benign June inflation report, markets are wagering that the Fed will lay the groundwork for a September rate cut at its policy meeting on Wednesday, Reuters reported.

Futures are fully priced for a quarter-point easing and even imply a 12% chance of 50 basis points (bps), and have 68 bps of easing priced in by December.

Meanwhile, the BSP is set to hold its own review on Aug. 15, where it is expected to deliver its first rate cut in over three years.

“Philippine shares succumbed to profit taking before the month’s end as investors looked to cash in after July saw a substantial rise in the index,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Funds are also gearing up for another data-heavy week, with more company earnings coming in as well,” he said.

Almost all sectoral indices ended lower on Monday, with industrials being the lone gainer, rising by 0.16% or 14.9 points to 9,174.50.

Meanwhile, financials retreated by 2.65% or 55.08 points to 2,021.37; mining and oil dropped by 1.18% or 98.57 points to 8,253.27; property went down by 0.89% or 23.91 points to 2,640.56; services declined by 0.84% or 16.95 points to 1,990.23; and holding firms decreased by 0.51% or 29.98 points to 5,792.24.

“Among the index members, ACEN Corp. achieved the top spot, surging by 6.19%, while Bloomberry Resorts Corp. was at the bottom, losing 4.56%,” Ms. Alviar said.

Value turnover rose to P5.06 billion on Monday with 658.32 million shares changing hands from the P4.37 billion with 924.21 million issues traded on Friday.

Decliners outnumbered advancers, 105 versus 83, while 55 names ended unchanged. — R.M.D. Ochave with Reuters

On Friday, the Philippine Stock Exchange index (PSEi) rose by 0.83% or 55.74 points to end at 6,726.01, while the broader all shares index gained by 0.64% or 23.29 points to close at 3,630.10.

Week on week, however, the PSEi dropped by 0.97% or 65.68 points from its 6,791.69 finish on July 19.

Trading at the stock market was disrupted last week as Super Typhoon Carina (international name: Gaemi) enhanced a southwest monsoon, causing torrential rains in Metro Manila.

“Amid the onslaught of Super Typhoon Carina, local equities broke their multi-week winning streak, although losses were trimmed before weekend,” online brokerage firm 2TradeAsia.com said in a market note.

“The local market has already exhibited a golden cross as its 50-day exponential moving average crossed above its 200-day counterpart. This signals a possible rally in the medium- to long-term for the bourse. Trading remains tepid, however, as many are still on the sidelines amid lingering uncertainties,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

For this week, the Fed’s July 30-31 policy review will take center stage, Mr. Tantiangco said.

“In particular, investors are expected to watch out for clues regarding the Fed’s policy outlook. If the Fed gives a dovish outlook, this may spur optimism in the local market,” he said.

The Fed is widely expected to keep its target rate at the current 5.25%-5.5% range for the eighth straight meeting this week. However, markets are awaiting more hints from Fed Chair Jerome H. Powell on the central bank’s easing cycle, which investors expect to begin by September.

Mr. Tantiangco added that the market will monitor the July S&P Global Philippines Manufacturing Purchasing Managers’ Index data scheduled to be released on Aug. 1.

He put the PSEi’s support at 6,400 and resistance at 6,700-6,800.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort placed the market’s immediate major support at 6,360 and resistance at 6,800-7,000.

For its part, 2TradeAsia.com put immediate support at 6,600 to 6,650 and resistance at 6,850.

“Momentum generated by an improving macro backdrop of inflation and growth are likely to persist until data confirms otherwise, and positive earnings growth should help the PSEi brute force its strong resistance near the 7,000 mark,” it said. “On that note, the upcoming ghost month may increase friction in the short term.”

The ghost month is a period in the Lunar calendar when some Asian investors refrain from making big investments or decisions, resulting in lower trading volumes. For this year, the period is scheduled to start on Aug. 4 and end on Sept. 2. — R.M.D. Ochave

The bellwether Philippine Stock Exchange index (PSEi) dropped by 1.22% or 82.85 points to end at 6,670.27 on Thursday, while the broader all shares index fell by 0.87% or 31.67 points to finish at 3,606.81.

Financial markets were closed on Wednesday due to the typhoon.

“The local market dropped as investors tracked Wall Street’s sell-off overnight amid dismal second quarter corporate results from the tech sector,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message. “Also, concerns over the economic damage to the country caused by Typhoon Carina weighed on the bourse.”

“Philippine shares followed the sentiment of regional equities dropping more than 1% after resuming trading following the suspension from Typhoon Carina,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan likewise said in a Viber message.

Asian shares were hammered on Thursday as a slump in global tech stocks sent investors fleeing into less risky assets, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1%, while Japan’s Nikkei tumbled 3.3%.

On Wall Street, the S&P 500 lost 128.61 points or 2.31% to 5,427.13 points on Wednesday, while the Nasdaq lost 654.94 points or 3.64% to 17,342.41. The Dow Jones Industrial Average fell 504.22 points or 1.25% to 39,853.87.

“Investors also digested the government’s latest fiscal position data,” Mr. Plopenio added.

The National Government’s (NG) budget deficit narrowed by 7.24% year on year to P209.1 billion in June from P225.4 billion a year ago, Treasury data showed.

For the first six months, the NG’s budget gap widened by 11.2% to P613.9 billion from P551.7 billion a year ago.

The six-month deficit was 7.24% below the P661.8-billion program for the period as revenues were better than expected.

All sectoral indices closed lower on Thursday. Mining and oil retreated by 3.78% or 330.37 points to 8,398.57; property lost 1.98% or 53.10 points to end at 2,628.72; services went down by 1.39% or 28.21 points to 1,998.30; holding firms dropped by 1.08% or 63.49 points to 5,779; financials decreased by 0.89% or 18.57 points to 2,064.61; and industrials declined by 0.43% or 39.32 points to 9,073.96.

Value turnover dropped to P4.01 billion on Thursday with 594.95 million shares changing hands from the P5.49 billion with 401.94 million issues traded on Tuesday.

Decliners overwhelmed advancers, 121 versus 59, while 54 names were unchanged.

Net foreign selling stood at P205.72 million on Thursday versus the P442.93 million in net buying seen on Tuesday. — Revin Mikhael D. Ochave with Reuters