The benchmark Philippine Stock Exchange index (PSEi) closed at 6,462.80, down by 38.20 points or 0.58 percent, while the broader All Shares index slipped to 3,415.89, down by 11.41 points or 0.33 percent.
MANILA, Philippines — The local stock market started a shortened trading week in the red as investors stayed mostly on the sidelines, bucking a broad rally in other Asian markets.
The benchmark Philippine Stock Exchange index (PSEi) closed at 6,462.80, down by 38.20 points or 0.58 percent, while the broader All Shares index slipped to 3,415.89, down by 11.41 points or 0.33 percent.
Total value turnover was thin at P3.9 billion. Market breadth was negative, 88 to 82, while 52 issues were unchanged.
Claire Alviar of Philstocks Financial said investors took some gains while awaiting fresh catalysts toward the year-end.
“Many were observed on the sidelines, with a net market value turnover of P3.42 billion, lower than this month’s average of P4.18 billion thus far,” she said.
Elsewhere in Asia, markets were higher, tracking Christmas holiday gains on Wall Street, with investors betting on the US Federal Reserve cutting interest rates as early as March.
Markets in Japan, Australia and Hong Kong all rose, with bourses in the latter two reopening after the Christmas trading break. Likewise, Shanghai, Seoul, Taipei, Wellington, Mumbai, Jakarta and Kuala Lumpur were all up.
Market sentiment has been largely positive since the Fed’s last meeting, when it indicated the rate-hike cycle could be nearing its end, with inflation beginning to slow.
Global markets were also positively affected by the so-called “Santa Claus rally,” which has historically seen stocks tick higher – albeit at thinner volumes – during the end-of-year holiday period.
“Since ‘69, the S&P has averaged a 1.3 percent gain in the Santa Rally, and with the market up so much this year, punctuated with an eight-week winning streak, there are not many sellers willing to book taxable gains to avoid a weak possibility of a correction,” said investor Louis Navellier in a note.
Still, the main focus for investors will remain the Fed, whose rate-hike cycle has driven market activity ever since it began last year.
“The bets for a March Fed cut continue to grow, helping to propel stocks higher,” said Navellier.
“Interest rates are essentially flat, and the US dollar index continues to fall.
