The stock market index falls, while the peso trades sideways.
The Philippine Stock Exchange index (PSEI) finished the day in the red only hours before President Rodrigo R. Duterte’s sixth and last State of the Nation Address (SONA), while the currency traded sideways.
To 6,372.61 points, the main stocks index fell 2.27 percent or 148.13 points.
The Dow Jones Industrial Average fell 1.82 percent, or 73.36 points, to 3,965.15 points.
All of the sectors indices finished down as well, with the Holding Firms index falling 2.43 percent.
Financials trailed with a 2.34 percent drop, followed by Services with a 2.09 percent drop, Property with a 2.03 percent drop, Industrial with a 1.67 percent drop, and Mining and Oil with a 1.17 percent drop.
A total of 1.95 billion shares worth PHP4.15 billion were traded.
At 151 to 49, decliners outnumbered advancers, with 39 shares remaining unchanged.
Most people anticipated the President to “explain how he would lead the nation out of the epidemic,” according to Luis Limlingan, head of sales at Regina Capital Development Corporation.
“The administration’s ancestral legacy will be the centerpiece of the other story theme,” he added.
The Federal Reserve meeting on Thursday will also be a role in this week’s stocks trade, as investors will be waiting for Fed Chairman Jerome Powell’s new advice, he added.
“Federal Reserve officials aren’t anticipated to indicate a decrease in assistance for the US economy when they meet,” Limlingan added, “but they will discuss how to cut down huge asset purchases when the time comes.”
The recent drop in bond rates, as investors fear the growing Delta coronavirus strain may drain the recovery, has undoubtedly reduced demands on the Fed to cease asset purchases “sooner rather than later,” he said.
Meanwhile, the peso finished the day at 50.35, up from 50.34 last Friday.
It started the day at 50.33, down from the previous session’s 50.1 openings.
It fluctuated between 50.4 and 50.265, resulting in a 50.341 average.
The volume was USD944.37 million, up from USD804.6 million in the previous session.