FED RATE HIKES. The main stocks index starts September almost flat and the peso in negative territory as investors continue to worry about the impact of Federal Reserve rate hikes on the US economic output. This, as Federal Reserve officials continue to indicate more rate increases to address the elevated inflation rate. (PNA graphics)
MANILA – The main equities index ended almost flat on Thursday after slipping for the past days due to recession fears in the United States, and the peso mirrored this performance.
The Philippine Stock Exchange index (PSEi) rose by 0.07 percent, or 4.63 points, to 6,588.28 points.
All Shares, on the other hand, slipped by 0.08 percent, or 2.68 points, to 3,498.04 points.
Most of the sectoral indices gained during the day, led by Holding Firms after it rose by 1.14 percent.
It was trailed by Mining and Oil, 0.80 percent; Financials, 0.54 percent; and Industrial, 0.20 percent.
On the other hand, Property shed by 2.06 percent and Services by 0.57 percent.
Volume dipped to 635.98 million shares amounting to PHP5 billion.
Decliners surpassed advancers at 96 to 87, while 46 shares were unchanged.
“Philippine shares started September with a lukewarm response as investors weighed on the possible consequence of the Fed’s (Federal Reserve) stern fight against inflation,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Fed Chair Jerome Powell recently said they would continue with the tightening moves to address the elevated inflation rate in the world’s largest economy but also noted its negative impact on domestic growth.
Limlingan said recession fears continue to affect oil prices, thus the further slip of Brent crude oil futures by 2.76 percent to USD95.14 per barrel for the November contract.
West Texas Intermediate (WTI) crude oil futures also went down by 1 percent to USD90.78 per barrel.
Meanwhile, the local unit depreciated against the US dollar after ending the day’s trade at 56.42 from 56.145 on Wednesday.
It opened the day at 56.24 and traded between 56.45 and 56.25. The average level for the day stood at 56.362.
Volume increased to USD1.09 billion from USD810.71 million in the previous session. (PNA)
