Growth concerns weaken stocks index; peso firms up

Growth concerns weaken stocks index; peso firms up

MANILA – The local stock barometer shed on Wednesday mainly on looming Federal Reserve rate adjustment and growth concerns, while the peso improved against the US dollar.

The Philippine Stock Exchange index (PSEi) declined by 0.58 percent, or 40.16 points, to 6,880.20 points.

All Shares followed with a drop of 0.40 percent, or 17.37 points, to 4,277.63 points.

Most of the sectoral indexes also ended the day in the negative territory with the Property declining by 2.17 percent; Services, 1.39 percent; Industrial, 0.88 percent; Financials, 0.77 percent; and Mining and Oil, 0.18 percent.

Only the Holding Firms gained during the day after it rose by 0.78 percent.

Volume totaled 1.51 billion shares amounting to PHP7.55 billion.

Decliners led advancers at 128 to 64, while 51 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation head of sales, said the PSEi’s performance during the day is in line with its counterparts in the region due to growth concerns.

“US stocks closed as the softer-than-expected inflation reading failed to assuage economic uncertainties and the increasing likelihood of a corporate tax hike,” he said in a report.

US consumer price index (CPI) rose by 5.3 percent year-on-year last August, slower than the 5.4 percent in the previous month.

Limlingan said the deceleration in the inflation rate in the US last August “supports Federal Reserve Chairman Jerome Powell’s assertion that spiking inflation is transitory and calms market fears that the central bank will begin tightening monetary policy sooner than expected.”

Meanwhile, the peso improved against the US dollar after closing the day at 49.79 from 49.91 day ago.

It opened the day at 49.92 and traded between 49.935 and 49.75.

The average level for the day stood at 49.856.

Volume declined to USD654.8 million from USD678.45 million on Tuesday. (PNA)

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