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After the Federal Reserve raised its benchmark interest rates by 25 basis points on Thursday, local stocks mainly rose on Friday, but the peso closed the week flat against the US dollar.

To reach 6.602.17 points, the Philippine Stock Exchange index (PSEi) increased by 1.01 percent, or 65.81 points.

To 3,516.72 points, All Shares increased by 0.69 percent, or 23.95 points.

The majority of sectoral indices also finished the week higher, topped by the Services sector after its gain of 2.33 percent.

Holding Companies came in second with 1.14 percent, followed by Industrial with 0.92 percent, Property with 0.39 percent, and Financials with 0.15 percent.

Only the Mining and Oil index, which decreased by 0.24 percent, finished the week in the red.

627.06 million shares, or PHP4.68 billion, were traded.

43 shares were unchanged, and there were 102 more advancers than decliners.

According to Luis Limlingan, head of sales at Regina Capital Development Corp., “Philippines shares retested the 6,600 level, once more closing in the green as investors continued to respond on the 25 bp (basis points) rate adjustment announced by the Fed on Wednesday.”

He also noted the Fed’s assertion that it is almost done fighting the rising inflation rate.

In the Philippines, Limlingan linked the local stock market’s bargain-hunting behaviour to the Bangko Sentral ng Pilipinas (BSP) key rates’ 25 basis point hike on Thursday, which increased the overall increase in those rates to 425 basis points since May 2022.

West Texas Intermediate (WTI) and Brent crude prices dropped on the international market to USD69.96 and USD75.91, respectively, “after US Energy Secretary Jennifer Granholm told lawmakers that it could take years to restock the nation’s Strategic Petroleum Reserve (SPR).”

The peso, which had started the day at 54.27 and closed the week at 54.35, ended the day in a sideways pattern against the US dollar.

It began trading at 54.36 and fluctuated between 54.42 and 54.22 for a 54.32 average.

Volume decreased from USD1.14 billion the previous day to USD1.04 billion.

According to Michael Ricafort, chief economist at Rizal Commercial Banking Corp., the local currency experienced a correction in part because of the strengthening of the US dollar, the rise in US stock markets, the announcement by US authorities of measures being taken to address banking issues, and significant rate increases by the US Federal Reserve, Bank of England (BoE), Norges Bank of Norway, and the Swiss National Bank.

These variables, according to Ricafort, are partially offset by the governor of the Bangko Sentral ng Pilipinas (BSP), Felipe Medalla, who stated that by October of this year, domestic inflation is anticipated to revert to the government’s goal range of 2 to 4 percent.

According to Medalla, domestic banks are still able to withstand changes in their international counterparts, and the central bank will keep an eye on developments throughout the world.

The estimated range for the local currency against the dollar for the coming week is between 54.10 and 54.60, while the anticipated range for Monday is between 54.25 and 54.45.

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