Oliver Bugarin 5 0 0 3 min to read

PH stocks gauge and peso fall in response to speech by Fed Chair

On Tuesday, the main stock index and the peso both fell due to risk-off attitudes following yet another Federal Reserve statement calling for additional tightening measures.

The Philippine Stock Exchange index (PSEi) dropped 0.92 percent, or 62.23 points, to 6,690.27 points to begin the short workweek on the wrong foot.

All Shares, which were all other counters, too ended the day in the red, down by 0.81 percent, or 28.95 points, to 3,548.50 points.

Services experienced the largest reduction of all the sectoral indicators, falling 1.09 points. Holding Firms, 1.01 percent; Financials, 0.93 percent; Property, 0.85 percent; and Industrial and Mining and Oil, 0.53 percent, were the next most affected sectors.

1.26 billion shares, or PHP5.98 billion, were traded.

At 124 to 58, losers outnumbered winners while 51 shares remained the same.

According to Luis Limlingan, head of sales for Regina Capital Development Corporation (RCDC), “Philippine shares settled in the red amid mounting concerns over rising rates and tighter US monetary policy, which reflected the blunt remarks made by Fed Chair (Jerome) Powell in the recently held Jackson Hole (symposium)”.

Following Powell’s speech, Wall Street had a sell-off, according to him, which “appeared to extinguish hopes that the central bank would change its aggressive course and refrain from raising interest rates in the months to come.”

The peso dropped from 56.02 on Friday to 56.225 in the meanwhile.

The price ranged from 56.32 to 56.1 and started the day at 56.15. A 56.243 average was recorded throughout the entire day.

Volume increased to USD 1.083 billion from the previous session’s USD 804.5 million.

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