MANILA – Expectations for continued hikes in the Federal Reserve’s key rates hurt the local stock barometer but the peso finished unchanged against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 0.36 percent, or 24.52 points, to 6,716.88 points.
All Shares followed with a drop of 0.46 percent, or 16.67 points, to 3,585.85 points.
Most of the sectoral indices tracked the main index–Mining and Oil, 2.15 percent; Holding Firms, 1.61 percent; Industrial, 1.01 percent; Services, 0.71 percent; and Financials, 0.11 percent.
Only the Property index rose during the day after it jumped by 2.08 percent.
Volume reached 1.88 billion shares amounting to PHP5.94 billion.
Losers led gainers at 134 to 60, while 47 shares were unchanged.
“Philippine shares started the week slipping into the red as investors continued to bet that the Federal Reserve will tighten monetary policy aggressively to combat surging inflation,” said Luis Limlingan, Regina Capital Development Corporation head of sales.
Limlingan said the local bourse was mainly affected by the initial public offering of renewable energy developer RASLAG Corp, which finished the day’s trading up by 2.5 percent to PHP2.05 per share.
“Investors were receptive to the company’s expansion plans given the increased demand for reliable sources of energy in the medium and long term,” he said.
Limlingan said “in general, the global pressures to take a hard shift to renewable to ease the effects of climate change are shifting the limelight to alternative sources of energy –boding well for Raslag and its business model.”
Other factors that drove the day’s trading include the rise in prices of commodities in the international market due to stronger US dollar, he added.
On the other hand, the local currency was unchanged against the greenback at 52.86 from the trading last June 3.
It opened the day at 52.92, weaker than its 52.82 start in the previous session.
It traded between 52.97 and 52.84, resulting in an average of 52.916.
Volume declined to USD1.08 billion from USD1.13 billion at the end of last week. (PNA)