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Stocks slip anew as Fed hints rate hikes; peso ends flat

By Joann Villanueva

April 7, 2022, 8:19 pm

<p><strong>LOOMING RATE HIKES</strong>. The Philippine Stock Exchange index (PSEi) declines again on Thursday (April 7, 2022) on looming hikes in the Federal Reserve's key policy rates. However, the peso managed to gain against the US dollar. <em>(Photo from PNA file)</em></p>

LOOMING RATE HIKES. The Philippine Stock Exchange index (PSEi) declines again on Thursday (April 7, 2022) on looming hikes in the Federal Reserve's key policy rates. However, the peso managed to gain against the US dollar. (Photo from PNA file)

MANILA – Further rate tightening plans by the Federal Reserve continued to negatively impact the local stock barometer on Thursday but the peso improved against the US dollar.

The Philippine Stock Exchange index (PSEi) shed 2.58 percent, or 183.23 points, to 6,926.03 points.

All Shares declined by 2.10 percent, or 79.26 points, to 3,701.23 points.

Property registered the largest decline at 2.97 percent and was followed by Financials, 2.87 percent; Industrial, 2.44 percent; Services and Mining and Oil, both with 2.26 percent; and Holding Firms, 2.21 percent.

Volume was thin at 920.28 million shares amounting to PHP6.4 billion.

Decliners led advancers at 139 to 33, while 52 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said investors continue to digest the Fed’s plan to increase some more of its key rates following the 25 basis point hike to between 0.25 to 0.50 percent last month, the first since December 2018.

“The March FOMC (Federal Open Market Committee) minutes revealed some of the key parameters, including that the monthly cap would likely be set at USD95 billion –split USD60 billion and USD35 billion between Treasury and mortgage-backed securities– and that the caps would be phased in ‘over a period of three months or modestly longer’,” he said.

Limlingan said the FOMC minutes suggested that US monetary authorities consider it appropriate to go towards a neutral policy position “expeditiously.”

Meanwhile, the local currency finished the day at 51.42 from the previous session’s 51.43.

It opened the day weaker at 51.37 compared to the 51.25 a day ago.

It traded between 51.43 and 51.33, resulting in an average of 51.385.

Volume reached USD885.5 million, a drop from the previous day’s USD1.26 billion. (PNA)

 

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