‘WAIT AND SEE.’ The wait-and-see stance before the release of the US June 2022 inflation rate, along with its impact on the Federal Reserve's rate, resulted in the negative close of the local bourse's main index on Wednesday (July 13, 2022). However, the peso took a breather after touching its almost 18-year low on Tuesday. (PNA file photo)
MANILA – Risk-off sentiments reigned in the local bourse on Wednesday, resulting in the negative close of the main equities index, but the peso managed to close sideways against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 1.49 percent, or 94.57 points, to 6,255.37 points.
All Shares followed with a decline of 1.04 percent, or 35.34 points, to 3,374.57 points.
Most of the sectoral gauges also tracked the main index, led by the Holding Firms after it fell 1.96 percent.
It was trailed by Financials, 1.93 percent; Property, 1.92 percent; Services, 0.59 percent; and Industrial, 0.15 percent.
Only the Mining and Oil index gained during the day after it rose by 0.24 percent.
Volume reached 1.28 billion shares amounting to PHP5.55 billion.
Decliners led advancers at 139 to 44, while 49 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, attributed the decline in the main index partly to investors’ wait-and-see mode before the report on US’ June 2022 inflation rate, which will be released later in the day.
Limlingan said the consumer price index in the US is forecast to jump to 8.8 percent from the four-decade high of 8.6 percent last May.
“The likely hot reading could prompt the Fed (Federal Reserve) to hike another 75 bps (basis points) during this month’s meeting,” he said.
The Federal Open Market Committee hiked the Fed’s key rates by 150 basis points to date since last March as US monetary authorities try to tame the acceleration in inflation rate in the world’s largest economy.
Limlingan said the negative sentiments were also caused by the negative finish in the US equities market on worries about global economic expansion.
Meanwhile, the local currency finished the day at 56.26, a tad better than the previous session’s 56.37.
It opened the day at 56.31, weaker than the previous day’s 56.13.
It improved to 56.23 mid-trade but also dipped to 56.43, bringing the day’s average to 56.339.
Volume reached USD994 million, lower than the USD1.39 billion a day ago. (PNA)
