WAIT-AND-SEE. The main stocks gauge slips on Monday (July 25, 2022) ahead of the Fed meeting from July 26-27, 2022. However, the peso improved against the US dollar. (PNA file photo)
MANILA – The wait-and-see stance for the Federal Reserve’s rate decision this week mainly resulted in the negative close of the local stock barometer on Monday but the peso improved against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 0.86 percent, or 53.86 points, to 6,209.53 points.
All Shares trailed with a drop of 0.63 percent, or 21.29 points, to 3,359.77 points.
Most of the sectoral gauges also ended the trade in the negative territory, namely Financials, 2.79 percent; Services, 1.63 percent; Industrial, 0.82 percent; and Holding Firms, 0.37 percent.
On the other hand, Property rose by 0.79 percent and Mining and Oil by 0.06 percent.
Volume remained thin at 517.72 million shares amounting to PHP4.3 billion.
Decliners led advancers at 114 to 61, while 47 shares were unchanged.
“Philippine shares started the last trading week of July quietly, as stateside will have a busy week ahead, both on the earnings and economic data front,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
For one, the Federal Open Market Committee (FOMC) will have its 5th meeting for this year on July 26-27 and it is widely expected to announce another 75 basis points increase in the Fed Funds Rate.
The Fed’s key rates have so far been increased by 25 basis points last March, 50 basis points last May, and 75 basis points in June –all of which are aimed at helping address the four-decade high inflation rate in the US.
Other data releases from the US this week include the second-quarter gross domestic product (GDP) report, the personal consumption expenditures inflation data, employment cost index, home prices and new home sales, and consumer sentiment.
Meanwhile, the local currency improved against the US dollar after it closed the day at 56.1 from 56.28 last Friday.
It opened the day at 56.2 and traded between 56.25 and 56.1.
The average level for the day stood at 56.184.
Volume reached USD722.2 million, lower than the previous session’s USD789 million. (PNA)
