Connect with us

Hi, what are you looking for?


PHL stocks may decline before Fed, BSP meetings


PHILIPPINE SHARES may continue to decline this week ahead of the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).

The Philippine Stock Exchange index (PSEi) slipped by 26.90 points or 0.4% to close at 6,548.77 on Friday, while the broader all shares index went down by 22.49 points or 0.64% to 3,474.41.

Week on week, the PSEi declined by 57.23 points or 0.87% from its close of 6,606 on Sept. 9.

“The local bourse lost steam midweek onwards, mimicking Wall Street’s weakness after US inflation missed consensus,” online brokerage said in a report.

The US consumer price index (CPI) rose in August amid rising rent and healthcare costs, strengthening the case for another aggressive Fed rate hike this week.

Consumer inflation edged up by 0.1% to 8.3% last month after being unchanged in July. In the 12 months through August, the CPI increased to 8.3%.

Fed Chair Jerome H. Powell earlier said the central bank was “strongly committed” to fighting inflation. The Fed is meeting to review policy on Sept. 20-21 and has raised rates by 225 basis points (bps) since March, including two 75-bp hikes in June and July.

“Philippine stocks slid [on Friday] following the latest FTSE (Financial Times Stock Exchange) rebalancing and after investors digested a couple of economic reports that showed a muddy picture of the US economy,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

“Initial jobless claims came in better than expected, but import prices dropped less than estimated. Retail sales beat expectations but were negative when excluding autos. Manufacturing data also showed a slowing economy,” Mr. Limlingan added.

For this week, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message that the PSEi may drop ahead of expected rate hikes from the Fed and the BSP.

“We may see episodes of bargain hunting as the market lies at attractive levels. However, the general mood is still expected to be bearish as investors price in another possible 75-basis-point rate hike by the Fed to combat their still elevated inflation,” Mr. Tantiangco said.

“Investors are also expected to watch out for the BSP who may also act aggressively amid the demand-side risks to our country’s inflation, and the weakening of our local currency which also poses upside risks to the rise of our general price level. A 75-basis-point rate hike by the Fed, which puts more depreciation pressure on the peso, may lead to a 50-basis-point rate increase by the BSP,” he added.

The BSP will hold its policy meeting on Sept. 22, right after the Fed’s review. It has hiked borrowing costs by 175 bps since May to rein in rising prices. placed the PSEi’s immediate support at 6,500, secondary support at 6,400 and resistance at 6,700, while Philstocks Financial’s Mr. Tantiangco put support at 6,400 and resistance at 6,600. — Justine Irish D. Tabile

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!



PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...


Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...


Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...


REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...


Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, 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 © 2022 Respect Investment. All Rights Reserved.