Stocks fell Wednesday as investors remain on alert for developments in the Middle East after the attack on Saudi oil facilities rocked markets.
The Philippine Stock Exchange Index slipped 16.94 points, or 0.2 percent, to 7,915.29 on a value turnover of P6.7 billion. Losers beat gainers, 107 to 90, with 43 issues unchanged.
Jollibee Foods Corp., the biggest fast-food chain, declined 3.2 percent to P223.20, while International Container Terminal Services Inc., the largest port operator, lost 2.5 percent to P130.
Nickel Asia Corp., the biggest nickel miner, rallied 2.4 percent to P4.20, while SM Investments Corp. of the Sy Group rose 2 percent to P1,020.
The rest of Asian equities were mixed Wednesday, with attention turning to the Federal Reserve’s key policy decision later in the day.
Crude prices tumbled Tuesday and were almost unchanged in Asia following news that Riyadh will get its two major installations back online earlier than expected, though analysts said there was nervousness on trading floors about oil security in the future.
With fears low for now of a military retaliation against Iran—accused of being behind the strikes—focus is now on the Fed, which is expected to cut interest rates while its post-meeting statement will be closely followed for clues about future plans.
Equity traders shifted cautiously with Asian markets struggling for traction.
Hong Kong was 0.1 percent off, while Tokyo finished 0.2 percent down after a 10-day winning streak. Sydney slipped 0.2 percent and Singapore fell 0.4 percent with Bangkok also off.
But Shanghai ended up 0.3 percent, Seoul added 0.4 percent and Taipei rose 0.5 percent, while Mumbai and Jakarta also rose.
Global markets have spent most of this month rising on bets that central banks, led by the Fed, will move to a softer monetary policy to offset a slowdown in most economies exacerbated by the China-US trade war.
“A rate cut of 25 basis points is universally regarded as a done deal by global markets,” said OANDA senior market analyst Jeffrey Halley.
“What will be closely watched is the press conference 30 minutes later, where we will gain more clarity as to whether the Fed has moved to an explicit easing bias.
“The likelihood of a shift from neutral to easing will be high as the (policy board) will not be able to ignore the storm cloud around the rest of the world that must eventually start raining on the United States.”
Oxford Economics estimates the Fed will cut three more times this year, which would erase all its 2018 rate hikes.
The Fed has been forced to pump more than $100 billion into US financial markets owing to a tightening of liquidity that had seen short-term lending rates spike for companies.
Dealers have been given some optimism by the US and China’s resumption of trade negotiations next month, with a delegation from Beijing reportedly visiting Washington this week for preparatory talks.
However, there are fresh worries about the impact on the already stuttering world economy from the Saudi oil attacks on Saturday. With AFP