FLAT. Both the stocks index and the peso finish sideways on Thursday (Aug. 18, 2022) as investors weigh the policy rate decision of the Bangko Sentral ng Pilipinas' policy-making Monetary Board. The board hiked the central bank's key policy rates by 50 basis points, which was widely expected by markets. (PNA file photo)
MANILA – The main stocks index ended almost unchanged on Thursday ahead of the announcement of the Bangko Sentral ng Pilipinas’ (BSP) key rate decision while the peso finished sideways to the greenback.
The Philippine Stock Exchange index (PSEi) rose by 0.08 percent, or 5.64 points, to 6,824.63 points.
All Shares slipped by 0.003 percent, or 0.11 points, to 3,619.77 points.
Half of the sectoral gauges rose during the day – Industrial, 0.90 percent; Financials, 0.58 percent; and Services, 0.35 percent.
On the other hand, Mining and Oil fell by 1.29 percent, Property by 1.21 percent, and Holding Firms by 0.11 percent.
Volume was thin at 909.51 million shares amounting to PHP13.76 billion.
Decliners surpassed advancers at 104 to 96, while 40 shares were unchanged.
“Investors remained vigilant ahead of the BSP meeting later today as the market traded slightly higher,” said Luis Limlingan, Regina Capital Development Corp. head of sales.
Trading in the local bourse closed just before the BSP announced the decision of its policy-making Monetary Board, which hiked the central bank’s key rates by 50 basis points.
Limlingan said market players widely expected a 50 basis points increase in the BSP rates after the off-cycle 75 basis points hike last July.
Another factor during the day’s trading is the decline in US equity indices on Tuesday, he said, partly attributing this to investors digesting the minutes of the Federal Reserve’s meeting in July and the income report of Target.
The US-based retailer Target reported an 87 percent year-on-year drop in operating income in the second quarter this year to USD321 million.
“Based on the published minutes, the central bank stays committed to tame inflation but hinted that it could adjust its tightening pace depending on market conditions,” he added.
Meanwhile, the local currency finished the day sideways to the US dollar at 55.888 from 55.86 on Wednesday.
It opened the day at 55.85 and traded between 55.975 and 55.755, averaging at 55.856.
Volume reached USD939.3 million, higher than the previous day’s USD918.65 million. (PNA)
