Stocks decline as investors digest US Fed’s hawkish hold

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July 31, 2026 | 12:00am

MANILA, Philippines — The local stock market slipped, but maintained its hold above the 6,300 level as investors decided to stay on the sidelines after the US Federal Reserve kept interest rates unchanged.

The bellwether Philippine Stock Exchange index declined by 0.74 percent or 47.29 points, closing yesterday’s session at 6,305.75.

The broader All Shares index also tumbled by 0.93 percent or 31.99 points to end at 3,415.35.

First Metro Securities said local equities extended their pullback, with the main gauge falling as investors digested the Federal Reserve’s hawkish hold and its implications for global risk appetite.

It said the session was also weighed down by heavy selling in Meralco and Aboitiz Equity Ventures.

“The local bourse ended lower as investors reacted to various developments following (President Marcos’) State of the Nation Address, particularly those concerning the power sector,” Luis Limlingan of Regina Capital said.

Limlingan said market sentiment was likewise impacted by the latest Fed decision to leave interest rates unchanged.

“Overall, cautious trading prevailed as investors assessed the implications of the policy stance and domestic developments,” he said.

Sectoral gauges were a mixed bag, with the mining and oil index registering the highest jump at 1.51 percent, while the industrial index took the biggest hit with a 3.81-percent drop.

Total turnover value thinned to P6.23 billion from the previous day’s P7.44 billion.

First Metro said while turnover remained healthy, foreign desks, however, posted robust net buying of P643.82 million, “suggesting institutional accounts viewed the pullback as an opportunity for selective repositioning and accumulation rather than a broad exit.”

Market breadth was negative as decliners battered advancers, 113 to 65, while 54 issues did not change hands.