LOCAL EQUITIES capped three weeks of increase on Friday, as investor appetite waned ahead of the United States Federal Reserve’s interest rate decision next week.

The 30-member Philippine Stock Exchange index (PSEi) fell by 88.19 points or 1.06% to close at 8,183.99 on Friday — down 1.04% on the week — while the broader all shares index dropped 38.24 points or 0.76% to 4,955.50.

Only one of the six sectoral indices ended with gains, and overseas investors reverted to selling mode after seesawing between net buying and net selling for much of the week.

“Local shares slid, alongside regional markets as investors worried that the Federal Reserve will not be as dovish as expected in its monetary policy announcement next week following strong economic data and remarks from the top European Central Bank official,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile phone message.

The US Federal Open Market Committee, which is scheduled to meet on July 30-31 for its next monetary policy review, is expected to either steady benchmark interest rates or cut them by 25 basis points.

Wall Street closed lower overnight in the wake of disappointing quarterly earnings results, with the Dow Jones Industrial Average down by 0.47% or 128.99 points to 27,140.98, the S&P 500 index retreating by 0.53% or 15.89 points to 3,003.67, while the Nasdaq Composite index gave up one percent or 82.96 points to 8,238.54.

Asian indices ended mixed, with Japan’s Nikkei 225 and TOPIX down by 0.41% and by 0.4%, respectively; Hong Kong’s Hang Seng dropping 0.69% and South Korea’s KOSPI giving up 0.4%; while the Shanghai SE Composite and India’s S&P BSE Sensex firmed up by 0.24% and 0.08%, respectively.

Back home, industrial was the lone sector that ended in positive territory, rising 0.53% or 60.58 points to close at 11,467.74.

The rest went down, led by mining and oil which lost 2.08% or 167.16 points to 7,870.97, followed by financials that shed 1.33% or 25.04 points to 1,848.49, property which dropped 1.22% or 54.02 points to 4,347.09, services which slipped by 1.06% or 17.79 points to 1,651.90 and holding firms declined 0.96% or 78.23 points to 7,999.12.

Stocks that advanced were nearly equal those that dropped at 91 to 90, while 58 others ended flat.

Papa Securities Corp. Sales Associate Gabriel Jose F. Perez noted that Jollibee Foods Corp. (JFC) was now the PSEi’s top gainer, following losses incurred in the past two sessions due to its acquisition of loss-making The Coffee Bean & Tea Leaf.

“JFC’s comeback today may have been technically driven after the stock was oversold yesterday as shown by its RSI (relative strength index) indicator. Foreigners were net buyers of P287 million,” Mr. Perez said in an e-mail.

Shares in JFC jumped 6.78% or P16 to close at P252 each on Friday, topping the day’s list of most active stocks. The other four on Friday’s list of 20 most active stocks that gained were Robinsons Land Corp. (0.36% to P28); Ayala Corp. (0.31% to P983); Wilcon Depot, Inc. (0.25% to P15.94) and Robinsons Retail Holdings, Inc. (0.06% to P78 apiece).

Those that lost for the day included JG Summit Holdings, Inc. (-4.06% to P66.20); International Container Terminal Services, Inc. (-2.92% to P133); BDO Unibank, Inc. (-2.44% to P148.20); Manila Electric Co. (-2.39% to P375); Ayala Land, Inc. (-2.28% to P51.35) and PLDT, Inc. (-2.16% to P1,135).

Some 1.227 billion shares worth P5.903 billion switched hands, compared to Thursday’s 894.307 million issues worth P8.274 billion.

Friday saw P278.021 million net foreign buying, against Thursday’s net foreign inflows of P124.457 million. — Arra B. Francia

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