US rate hike spooks market

INVESTORS have now digested the possibility of an interest rate hike in the US next month, prompting them to cash in on gains.

After declining nearly 1 percent intraday, the benchmark PSEi closed the session down 0.10 percent or 7.56 points to 7,787.37— helped by lastminute buying. The wider All Shares decreased by 0.05 percent or 2.34 points to 4,633.88.

“This week’s focus will be on Friday’s NFP [ nonfarm payrolls] report for August after stellar job gains in June and July which the Fed, as always, will be watching closely,” Metrobank said in a weekly note.

Analysts have indicated the August jobs data will be the basis for a Fed rate hike, particularly if the US economy shows signs of stability.

Some 1.32 billion shares were traded, valued at P13.174 billion. Decliners led advancers, 100 to 82, while 52 issues were unchanged.

On Tuesday, the PSEi lost 50.56 points or 0.64 percent to 7,794.93, while the All Shares lost 25.39 points or 0.55 percent to 4,636.22.