MANILA — Indications of a further rise in the US Federal Reserve’s rates boosted risk-on sentiments in the Philippine equities market Thursday but the peso suffered after the greenback strengthened.
The Philippine Stock Exchange index (PSEi) rose for the third straight day after it gained 0.59 percent, or 41.57 points, to 7,141.25 points.
Landbank market economist Guian Dumalagan attributed this to the “slightly hawkish FOMC minutes, easing crude prices, and a temporary halt on the trade war.”
The minutes of the Federal Open Market Committee (FOMC) meeting last September 25-26 showed a general anticipation for gradual increases in key rates although “a few participants expected that policy would need to become modestly restrictive for a time.”
Investors took note of these expectations, thus, the rise of all indices.
All Shares improved by 0.46 percent, or 20.12 points, to 4,362.40 points.
Mining and Oil registered the highest jump of 3.05 percent and was followed by Holding Firms, 1.22 points; Services, 0.31 percent; Financials, 0.29 percent; Property, 0.24 percent; and Industrial, 0.06 percent.
Volume reached 457.65 million shares amounting to PHP4 billion.
Advancers again surpassed decliners at 92 to 85 while 47 shares were unchanged.
On the other hand, the peso shed PHP0.075 after it finished the day at 53.965 from Wednesday’s 53.89.
A trader said expectations of additional an increase in US interest rates hurt the peso, as investors preferred safe haven assets.
The local currency’s weakness showed early on after it opened the trade at 53.98 from 53.87 a day ago.
It ranged between 54.045 and 53.94, resulting in an average of 53.999.
Volume reached USD729.25 million, lower than the previous session’s USD872.95 million. (Joann Villanueva/PNA)
