Manila, Philippines — Share prices fell anew as investors remained cautious, opting to stay on the sidelines ahead of critical policy decisions by the Bank of Japan and the US Federal Reserve. The Philippine Stock Exchange index (PSEi) closed lower for a second consecutive session, shedding 0.64 percent or 42.87 points to 6,606.36.
Factors at Play
- Global Uncertainty: Investors worldwide are closely monitoring central banks’ actions. The Bank of Japan’s monetary policy meeting and the US Federal Reserve’s interest rate decision hold significant implications for global markets. Uncertainty surrounding these events has prompted many investors to adopt a wait-and-see approach.
- Profit Taking: After a recent rally, profit-taking has become a prevalent strategy. Investors are locking in gains, especially given the market’s volatility. The PSEi’s recent surge created an opportunity for profit realization, leading to selling pressure.
- Oil Price Hike: The anticipated substantial oil price hike—up to PHP 2.20 per liter for gasoline and PHP 1.75 per liter for diesel—adds to economic concerns. Higher fuel costs can impact inflation and consumer spending, affecting overall market sentiment.
Technical View
- The PSEi breached the 6,800 level, signaling a potential shift in sentiment. Traders are closely monitoring support levels to gauge further downside risk.
- Key support lies around 6,600, where the index currently hovers. A decisive break below this level could trigger additional selling.
Investor Sentiment
While some remain cautious, others view this pullback as an opportunity. Bargain hunters may step in if the market stabilizes. However, geopolitical developments and central bank decisions will continue to influence investor sentiment.