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PH stocks rise, peso almost flat after Fed rate hike

By Joann Villanueva

June 16, 2022, 8:11 pm

<p><strong>75 BASIS POINTS</strong>. The main stocks index rises on Thursday (June 16, 2022), bouyed by the 75 basis points jump in the Federal Reserve's key rates. The peso also kept its footing against the US dollar despite the rate hike. <em>(PNA file photo)</em></p>

75 BASIS POINTS. The main stocks index rises on Thursday (June 16, 2022), bouyed by the 75 basis points jump in the Federal Reserve's key rates. The peso also kept its footing against the US dollar despite the rate hike. (PNA file photo)

MANILA – Risk-on sentiments buoyed the main equities index on Thursday while the peso finished the day sideways against the greenback following the 75 basis points increase in the Federal Reserve’s key rates.

The Philippine Stock Exchange index (PSEi) rose by 1.16 percent, or 73.59 points, to 6,393.01 points.

All Shares followed with a jump of 0.75 percent, or 25.54 points, to 3,435.24 points.

Most of the sectoral indices also gained during the day namely Property, 2.37 percent; Holding Firms, 1.72 percent; Financials, 1.64 percent; Industrial, 0.90 percent; and Mining and Oil, 0.81 percent.

Only the Services index ended the day in the negative territory after it fell 2.05 percent.

Volume was thin at 647.2 million shares amounting to PHP5.6 billion.

Decliners surpassed advancers at 107 to 103, while 48 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said the 75 basis points increase in the Fed rates is widely expected by the markets.

“But it was (Fed Chairman Jerome) Powell’s willingness to do another hike of that size to tamp down inflation back to its 2-percent objective that surprised markets,” he said.

The Fed’s key rates have been increased by a total of 150 basis points so far this year --25 basis points in March, 50 basis points In May, and 75 basis points this month.

Meanwhile, the local currency finished the day little changed against the greenback at 53.47 from 53.435 on Wednesday.

It opened the day’s trade flat at 53.3 and ranged between 53.495 and 53.29. The average level for the day stood at 53.372.

Volume reached USD1.14 billion, lower than the previous day’s USD1.16 billion. (PNA)

 

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