On Tuesday, bargain hunting in the local market was sparked by worries about the US…
Peso gains after Fed rate hike; PSEi declines to 53-level
The major index of the local bourse closed in the red on Thursday due to the widely anticipated 25 basis point increase in the Federal Reserve’s key rates, while the peso strengthened versus the US dollar.
To reach 6,986.19 points, the Philippine Stock Exchange index (PSEi) lost 0.70 percent or 49.57 points.
After falling by 0.09 percent, or 3.39 points, to 3,683.78 points, all Shares finished in the green.
But more sectoral indices, including Mining and Oil (3.04%), Services (0.75%), Industrial (0.24%), and Financials (0.20%), saw gains on the day.
1.29 billion shares, or PHP8.9 billion, were traded.
At 114 to 67, more shares advanced than fell, while 56 were unchanged.
The local currency decreased from Wednesday’s 54.475 to conclude the day at 53.845 against the US dollar.
According to Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), the local currency reached its greatest closing level on Thursday in more than 7.5 months, or since June 17, 2022, when it closed at 53.75.
It moved between 53.835 and 54.20 from the day’s opening price of 54.20. For the day, the average level was 53.955.
Volume increased from USD958.9 million in the prior session to USD1.620 billion.
According to Ricafort, financial markets were mostly driven during the day by the recent Federal Reserve rate hike, which raised its fund’s rate to between 4.5 and 4.75 percent, a new 15-year high.
According to Ricafort, the Federal Reserve has hinted at two more rate increases before May, citing reports that include Federal Reserve head, Jerome Powell.
He added that the “mainly lower US economic indicators support the less hawkish Fed but also foreshadow recession danger.”
The next critical mark for the peso, according to Ricafort, is at 53.30, which “helps maintain the underlying higher trend since June 2021.”
The local currency is anticipated to fluctuate between 53.70 and 54.00 versus the US dollar on Friday.***
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