Stocks weaken as investors await major economic news

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Local share prices weakened as investors wait for the US Fed’s meeting as well as the release of the latest Philippine gross domestic product numbers.

The main index lost 40.88 points or 0.56 percent to close at 7,252.64 as Banks led the retreat across the board. Volume remained low at 1.96 billion shares worth P6.05 billion as losers were double the number of gainers at 127 to 62 while 48 were unchanged.“Philippines shares closed in the red as many are beginning to make bets ahead of a busy week on the economic calendar,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that, “Early in the week, U.S. private sector PMIs for January as well as data on consumer confidence will be in focus. On Jan. 27, fourth quarter GDP results and jobless claims will be released.” “The Federal Reserve’s meeting on Tuesday and Wednesday, however, will likely set the tone for how markets are going to fare throughout the week, with investors awaiting any new clues on how much the central bank will raise interest rates this year and when it will start,” Limlingan said.

Philstocks Financial Senior Supervisor for Research Japhet Tantiangco said “The local bourse fell as investors took a cautious stance ahead of the Federal Reserve’s meeting this week. Worries over a possible aggressive monetary tightening by the Fed remain weighing on the local bourse.“ “Sentiment was also dampened by the country’s COVID-19 situation as cases outside the National Capital Region, Central Luzon, and Calabarzon continue to increase. According to the OCTA Research Team, cases outside the three regions mentioned have become the dominant part of the country’s total,” he added.

 

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