MANILA -- The Philippine peso tumbled back to the 52-to-the-greenback level on Friday but the main stocks gauge charged past the 7,700 level following the policy interest rate hike by the Bangko Sentral ng Pilipinas.
The Philippine Stock Exchange index’ (PSEi) rose by 2.39 percent, or a hefty 181.11 points, to 7,752.11 points when the closing bell rang.
All the other counters tracked the main index, with the All Shares up by 1.71 percent, or 79.24 points, to 4,709.15 points.
The sectors were led by the Financials, 2.54 percent, followed by the Holding Firms, 2.42 percent; Property, 2.39 percent; Services, 1.74 percent; Mining and Oil, 1.18 percent; and Industrial, 0.98 percent.
Volume totalled to 673 million shares amounting to PHP5.68 billion.
Gainers surpassed losers at 116 to 80 while 49 shares were unchanged.
The local currency closed the day at 52.19, weaker by 39 centavos than Thursday's finish of 51.8.
The peso began the day's trade at 51.95, reaching a high of 51.9 and a low of 52.21.
BSP Governor Nestor Espenilla Jr. announced on Thursday that the Monetary Board (MB) has raised policy interest rates by 25 basis points -- the first upward adjustment of key rates since September 2014.
Espenilla said the MB’s decision to hike overnight reverse repurchase facility to 3.25 percent and overnight lending and deposit facilities to 2.75 percent is a timely action, and “will avoid the necessity of further stronger action down the road”.
Likewise, the central bank raised inflation outlook to 4.6 percent in 2018 and 3.4 percent for 2019. Previous inflation projection of the BSP was at 3.9 percent and 3 percent for this year and next year, respectively. (PNA)
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