PSEi falls as Fed eyes end to stimulus

MANILA, Philippines (UPDATED) – Philippine shares fell in a regional sell-off on Thursday, June 20, after the US Federal Reserve hinted it would start easing back on its stimulus program this year.

The benchmark Philippine Stock Exchange index (PSEi) tumbled 186.53 points or 2.86% to 6,326.67.

The broader all-share index lost 102.47 points or 2.55% to 3,919.65.

All sectoral indices were in negative territory, with the mining and oil sector suffering the biggest drop of 3.83%.

Losers outnumbered gainers, 139 to 28, while 36 stocks were unchanged.

A total of 1.56 billion shares worth P7.57 billion were traded.

The Fed’s policy board said it could begin to ratchet down its multi-billion-dollar stimulus drive this year, signaling the US economy was improving.

The board however kept its quantitative-easing program, aimed at holding interest rates down, locked in place, saying that unemployment remains high and growth is still being held back by government spending cuts.

“People thought (the stimulus) would go on for long, but it will stop soon. We should prepare for it,” said Joseph Roxas of Eagle Equities. – Lean Santos/Rappler.com, with a report from Agence France-Presse