Wednesday, June 27, 2007
Shares plunge 1.9 ahead of US interest rate meeting (6:30 p.m.)
MANILA -- Philippine shares plunged to a two-week low Wednesday ahead of the US Federal Reserve's meeting on interest rates that could affect the local economy.
The benchmark 30-company Philippine Stock Exchange Index lost 69.91 points, or 1.9 percent, at 3,587.21, after rising 0.1 percent Tuesday. It hit a record close last week.
"This is actually good, we've risen too fast," said Ricardo Puig, analyst at Wealth Securities. "We now have the concern in the US, while new shares offers are siphoning liquidity."
The US Fed will decide Thursday whether to keep its benchmark rate steady. Unchanged U.S. rates augur well for low local interest rates and, consequently, for investor appetite for equities.
The retreat was led by property developer Ayala Land Inc., down 2.8 percent to P17.50, on concerns that sales may be undercut if rates rise.
Philippine Long Distance Telephone Co. dropped 1.9 percent to P2,620, while port operator International Container Terminal Services Inc. was lower by 1.7 percent to P28.50.
Decliners outnumbered gainers 139 to 14, while 23 issues were unchanged.
The peso fell to a two-week low against the US dollar due to a retreat of Philippine shares and corporate dollar purchases for month-end requirements.
The dollar closed at 46.580, up from 46.340 on Tuesday. (AP) |
