Stocks extend slide before Fed, tariff deadline
PHILIPPINE SHARES on Wednesday extended their losing streak to a fifth straight session as investors stayed on the sidelines before the US Federal Reserve鈥檚 policy decision overnight and the Trump administration鈥檚 Aug. 1 tariff deadline.
The benchmark Philippine Stock Exchange index (PSEi) dropped by 0.11% or 7.19 points to close at 6,381.23, while the broader all shares index fell by 0.09% or 3.49 points to 3,776.59.
鈥淭he local market declined for a fifth straight day as investors take a cautious stance while dealing with global trade uncertainties as the US鈥 Aug. 1 tariff negotiations deadline draws near,鈥 Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message. 鈥淚nvestors are also waiting for clues on the Fed鈥檚 policy outlook.鈥
鈥淭he PSEi slid down as investors are still watching if there would be still further developments on the upcoming tariff deadline on Aug. 1,鈥 Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message. 鈥淢oreover, companies are still releasing earnings reports, and this will probably remain as one of the sentiment drivers of the market for the next few weeks.鈥
The Fed was set to conclude its two-day meeting overnight, where it was widely expected to keep rates unchanged but provide clues on its policy path moving forward.
Meanwhile, ahead of US President Donald J. Trump鈥檚 deadline to reach a deal to avert 鈥淟iberation Day鈥 tariffs, some countries鈥 talks with the US looked set to go down to the wire, Reuters reported.
US and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, though no major breakthroughs were announced.
US officials said it was up to Mr. Trump to decide whether to extend a trade truce that expires on Aug. 12 or potentially let tariffs shoot back up to triple-digits.
Meanwhile, three South Korean cabinet-level officials met with US Commerce Secretary Howard Lutnick in a last-ditch push for a deal.
Most sectoral indices closed lower on Wednesday. Financials sank by 0.58% or 13.18 points to 2,223.13; holding firms declined by 0.33% or 17.97 points to 5,385.81; mining and oil retreated by 0.13% or 11.87 points to 9,082; and services went down by 0.11% or 2.45 points to 2,221.94.
Meanwhile, property increased by 0.6% or 14.17 points to 2,373.59 and industrials climbed by 0.28% or 26.06 points to 9,123.03.
鈥淎yala Land, Inc. was the day鈥檚 index leader, climbing 2.38% to P25.80. Converge ICT Solutions, Inc. was at the tail end, falling 3.14% to P17.90,鈥 Mr. Tantiangco said.
Value turnover dropped to P4.66 billion on Wednesday with 800.01 million shares traded from the P6.86 billion with 1.04 billion shares exchanged on Tuesday.
Decliners beat advancers, 95 versus 87, while 62 names were unchanged.
Net foreign selling went down to P57.49 million on Wednesday from P429.15 million on Tuesday. 鈥 Revin Mikhael D. Ochave with Reuters
