Peso up as PSEi slips on worries over next Fed rate decision

Peso up as PSEi slips on worries over next Fed rate decision

MANILA — Risk-off sentiments continued to weigh on the local bourse, resulting in another negative close for the Philippine Stock Exchange index (PSEi), but the peso recovered against the greenback.

The PSEi went down by 0.20 percent, or 13.33 points, to 6,685.90 points.

All Shares also went down by 20 percent, or 7.16 points, to 3,572.20 points.

Most of the sectoral gauges also ended the day in the negative territory –Property, 0.75 percent; Financials, 0.59 percent; Mining and Oil, 0.47 percent; and Holding Firms, 0.20 percent.

On the other hand, Services rose by 0.42 percent and Industrial by 0.22 percent.

Volume reached 932.4 million shares amounting to PHP4.35 billion.

Decliners led advancers at 90 to 85 while 39 shares were unchanged.

“Philippines shares have fallen deeper as market participants mull the summary of the Fed’s (Federal Reserve) latest meeting, contemplating the central bank’s next action to curb inflation,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.

Oil prices also went down anew “as investors ponder on more aggressive interest rate increases by central banks.”

Both the Brent crude and West Texas Intermediate (WTI) futures fell by 3 percent to USD80.60 per barrel and USD74.05 per barrel, respectively.

Meanwhile, the peso regained its footing against the US dollar and closed the day at 54.87 from Tuesday’s 55.18.

It opened the day at 55.12 and traded between 55.15 and 54.87, resulting in an average of 55.014.

Volume reached USD1.11 billion, up from the previous session’s USD 1 billion.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s correction to continued net inflows of foreign portfolio investments into the Philippines, weakening of the US dollar against major currencies, ratification by the Senate of the Regional Comprehensive Economic Partnership (RCEP) and decline in global oil prices.

He forecasts the peso to trade between 54.80 to 55.00 against the US dollar on Friday. (PNA)

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