The stock market fell sharply again Wednesday ahead of a crucial Federal Reserve policy meeting later in the day, with the benchmark index dropping below 8,000 points for the first time since Sept. 6, 2017.
The Philippine Stock Exchange Index plummeted 150.53 points, or 1.9 percent, to a six-and-half-month low of 7,909.07 on a value turnover of P9.52 billion. Losers beat gainers, 139 to 85, with 41 issues unchanged.
Major property developer Ayala Land Inc. lost 3 percent to P39.75, while sister Bank of the Philippine Islands, the third-biggest lender in terms of assets, tumbled 3.5 percent to P109.20.
Now Corp., which is bidding to become the country’s third telecommunications company, plunged 12.3 percent to P8.86, while Metro Pacific Investments Corp. declined 4 percent to P5.27.
Meanwhile, energy firms in Asia rose on the back of a rush into oil after data indicated a jump in US demand, but regional markets struggled to maintain early upward momentum ahead of a crucial Federal Reserve policy meeting later in the day.
Hong Kong was up 0.1 percent having been up more than one percent, while Shanghai ended down 0.3 percent and Seoul was marginally down.
But Sydney rose 0.2 percent, Wellington jumped more than one percent and Singapore put on 0.1 percent, while Jakarta and Bangkok were also up.
Seoul, Wellington and Taipei were also well up. Tokyo was closed for a public holiday.
Sydney put on 0.2 percent but gaming firm Crown Resorts fell more than one percent on news that tycoon James Packer had quit as director as he battles “mental health issues”.
Comments from new Fed boss Jerome Powell will be scanned in hopes for fresh guidance on its interest rate plans over the rest of the year.
Worries that the US central bank will embark on a sharper pace of rises than previously expected has rattled markets worldwide since the start of February as traders contemplate the end of a decade of cheap cash that has fired an equities rally.
Stephen Innes, head of Asia-Pacific trading at OANDA, said there would likely be some changes to the bank’s previous statements.
“Since the December meeting, inflation has shown signs of coming to life, although the latest round of data would challenge that view,” he added.
“But, more significantly, Fed speak has turned marginally more hawkish of late, suggesting we should expect some upgrade to the statement, at the minimum.”
Market uncertainty has also been fanned by Donald Trump’s controversial tariffs on metals imports and threats of more, which have sparked talk of a global trade war, while the Facebook data breach is also keeping things cautious.
However, the energy market provided some optimism in Asia on Wednesday after industry group the American Petroleum Institute announced a huge draw in US stockpiles last week, confounding expectations for another rise.
The news provided some hope that demand in the world’s top economy is picking up. Official government data will be released later Wednesday. With AFP