Stocks inch up before Fed meeting

The local stock market stopped sliding but failed to hold on to most of the day’s gains as investors wait for cues as the US Fed is about to start its September meeting.

The main index inched up 11.04 points or 0.17 percent to close at 6,448.46 as Banks led the advance but Conglomerates lagged behind. Volume declined to 401 million shares worth P4.75 billion as gainers outnumbered losers 94 to 82 with 55 unchanged.

“Philippine shares ended the day with a modest rebound ahead of another rate hike from the Fed. The FOMC (Federal Open Market Committee) will kick off its two-day meeting on Tuesday,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “The street bets that the central bank will adjust the benchmark rate by 75bps on Wednesday. Meanwhile, Moody’s Analytics sees the BSP to stay with its aggressive fight against soaring inflation. In line with this, it expects the central bank to push the benchmark rate by another 50bp to 4.25 percent on Sept. 22.”

Philstocks Financial Assistant Research Manager Claire Alviar said “Investors hunt for bargains near the 6,400 support levels, ending the PSEi’s five-straight days of losing streak.”

She noted that, “Along with other markets, the local bourse also took cues from the US markets’ positive performance overnight. As of 03:00 pm, most Asian peers were also in the green, following the US markets while waiting for the meeting of the Federal Reserve.”