Phl shares close lower ahead of Yellen speech

Share prices on the Philippine Stock Exchange closed lower for the second consecutive trading day on Wednesday, dragging the main PSEi below the 7,300 level, GMA News reported.

Investors were not into taking risks ahead of the speech of US Federal Reserve Chair Janet Yellen on Friday, an analyst noted.

The benchmark PSEi shed 57.27 points or 0.78 percent to 7,264.55. The All Shares index also dropped by 28.29 points or 0.64 percent to 4,379.98.

"We were risk-off ahead of Janet Yellen's speech on Friday. Market players are looking to gain more clarity, interest rate guidance for the year," Victor F. Felix, analyst at AB Capital Securities Inc., said.

Yellen is scheduled to speak before educators during the "Conversation with the Chair: A Teacher Town Hall Meeting" in Washington, D.C on January 12 (Friday, US time).

The Fed in December raised rates for the first time in a year, and hinted at a faster pace of tightening.

"The Fed's rate rise of 25 basis points to 0.5-0.75 percent was well flagged but investors were spooked when the 'dot plots' of members' projections showed a median of three hikes next year, up from two previously," Reuters said.

Felix noted the press conference of US Presidentelect Donald Trump on Wednesday failed to meet market expectations.

"Over the evening, Trump had a full press conference where investors were hoping for more clarity in his policies but he was unable to and the market reacted negatively," Felix said.

"Also, the market is a bit overheated so this is a healthy pullback. On Tuesday the market was nearing overbought levels. I think this prompted investors to take profit first," he said.

Another Reuters report said Trump's widely-awaited news briefing "provided little clarity on future fiscal policies, disappointing bulls wagering on major stimulus."