PHL shares weak ahead of Fed meeting

Philippine shares opened weak Monday as most investors stayed on the sidelines ahead of the US Federal Reserve (Fed) policy meeting this week.

 

"The market is down 29 points at early trades,” Abbygayle M. Estrella, analyst at AB Capital Securities Inc., told GMA News Online. “This is part of the market's anticipation of minutes of Federal Reserve's meeting," she said. 

 

Analysts see the market trading narrowly with a downward bias today," she added.

 

The main PSEi dropped 69.51 points or 1.11 percent to 6,172.75 as of 10:04 a.m.

 

Concerns about the Fed tapering its $80-billion bond-buying program, known as quantitative easing, has rocked global markets in the past three weeks.

 

The Fed meets on June 18-19.

 

In his daily report, Justino B. Calaycay, analyst at Accord Capital Equities Corp., said investors will have to balance fears with the opportunities that have opened up.

 

"The charts will have to wait for more confirmations—if only to shed some risks of a false signal, particularly after the market breezed through technical levels," he said.

 

"But value investors will have their hands full in searching the ruins for price anomalies or bargains in light of the still relatively unchanged domestic economic picture," he added. — VS,  GMA News