MANILA – The local stock barometer recovered on Tuesday due to bargain hunting, while the peso finished the day sideways against the US dollar.
The Philippine Stock Exchange index (PSEi) increased by 0.12 percent, or 7.52 points, to 6,474.53 points.
All Shares fell by 0.11 percent, or 3.88 points, to 3,471.05 points.
Most of the sectoral gauges also finished on the negative namely Property, 0.96 percent; Industrial, 0.87 percent; Services, 0.75 percent; and Financials, 0.15 percent.
On the other hand, Holding Firms improved by 1.64 percent and Mining and Oil by 0.70 percent.
Volume remained thin at 827.41 million shares amounting to PHP5.6 billion.
Decliners led advancers at 118 to 62, while 44 shares were unchanged.
“Investors finally became bargain hunters after witnessing an intense equity sell-off Monday night with the S&P 500 tumbling to a fresh low for the year and closing in bear market territory as recession fears grew ahead of this week’s key Fed’s two-day policy meeting,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
He said S&P 500 slipped by 3.88 percent on Monday.
The Federal Open Market Committee (FOMC) will have its meeting on June 14-15, and it is widely expected to announce another rate hike after the total of 75 basis points increase last March and May.
“Investors are bracing themselves for the possibility of a larger-than-expected interest rate hike this week after CNB’s Steve Liesman confirmed on Monday that the Federal Reserve will “likely” consider a 75 bp increase, which is greater than the 50 bp hike many traders had come to expect,” Limlingan said.
Meanwhile, the peso kept its footing against the US dollar after it finished the day at 53.25 from Monday’s 53.3 close.
It opened the day at 53.28 and traded between 53.4 and 53.13. The average level for the day stood at 53.272.
Volume rose to USD1.17 billion from USD685.2 million a day ago. (PNA)