The Philippine Stock Exchange Index (PSEi) fell by 0.24 percent on Thursday, failing to extend its three-day rally. Despite this decline, it still remained within the 7,500 level. Analysts say that it has been affected by profit taking and the Federal Open Market Committee's (FOMC) plan to trim $4.5 trillion (P226 trillion) worth of bonds. Read on to learn more about the latest PSEi news update.

PSEi and profit taking

The PSE's Daily Quotations Report on Thursday shows that the PSEi fell by 18.89 points or 0.24 percent to close at 7,565.32 level. On Wednesday, it finished at 7,584.21 points. On the other hand, the All Shares index also slipped to 4,508.81, with a decrease of 0.06 percent or 2.96 points. Net foreign buying also declined from the previous session’s P1.25 billion to P837.46 million.

"Philippine markets finally succumbed to profit taking. [The] sell-off was seemingly triggered by minutes from the Federal Reserve’s March meeting, noting plans to reduce its $4.5-trillion balance sheet this year," BusinessWorld Online reported Luis Limlingan, Managing Director of Regina Capital Development Corp, as saying. 

FOMC releases minutes of the March meeting

On Wednesday, the FOMC released the minutes of their March meeting. It revealed the committee's plan to shed bonds worth $4.5 trillion (P226 trillion), which are currently held by the US Central Bank. 

PSEi Sectoral indices summary

According to the PSEi chart, four sectors also declined and these include financials, mining and oil, property and services. Financials fell 0.89 points or 0.04 to finish at 1,903.82. As for mining and oil, it declined at 1.68 percent or 205.64 points, closing at 12,009.56 points on Thursday. The property counter finished at 3,285.60 points, dropping by 30.68 points or 0.92 percent. Meanwhile, the services counter closed at 1,589.26 points, going down by 11.53 points or 0.72 percent.

The holding firms and industrials counters both rose to 7,606.67 points and 11,172.31, respectively. The former ​increased by 0.01 percent, while the latter rose 58.43 points or 0.52 points.  

Advancers vs Decliners

There were 101 decliners compared to 91 advancers on Thursday. Meanwhile, 43 stocks were unchanged. The total value turnover also went down from P10.78 billion on Wednesday to P9.53 billion yesterday.

What do you think of the PSEi declining by 0.24 percent after rallying for three days? What about the FOMC's plans to trim $4.5 trillion (P226 trillion) worth of bonds? Let us know your thoughts about this in the comments area below.

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