MANILA – Philippine shares slipped anew on Friday due to hawkish signals from Federal Reserve officials who raised the possibility of more hikes in the Fed rates, even as the peso weakened against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 0.18 percent, or 11.36 points, to 6,393.55 points.
All Shares followed with a drop of 0.09 percent, or 2.94 points, to 3,414.75 points.
Half of the sectoral indices also finished the week down, namely Holding Firms, 0.43 percent; Industrial, 0.37 percent; and Financials, 0.15 percent.
On the other hand, Mining and Oil rose by 0.78 percent, Property by 0.59 percent, and Services by 0.25 percent.
Volume reached 537.03 million shares amounting to PHP3.32 billion.
Advancers led decliners at 103 to 89 while 41 shares were unchanged.
“Philippines shares were sold on news as investors digested further the implications of the recent statements of the Fed (Federal Reserve), “Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said.
This, after Fed officials indicated the possibility of additional hikes in the Fed’s key rates despite a pause earlier this month, as inflation continues to remain elevated.
Relatively, the peso weakened against the US dollar and closed the week at 55.77 from its 55.62 finish on Thursday.
It opened the day sideways at 55.6 and traded between 55.775 and 55.55. Average level for the day stood at 55.645.
Volume reached USD1.06 billion, up from the previous session’s USD 767.4 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s performance to correction due partly to strengthening of the US dollar, indications for a possible cut in the Bangko Sentral ng Pilipinas’ (BSP) key rates if inflation decelerates further down to 3 percent level, and the hawkish signals from Federal Reserve officials.
He said the peso-US dollar exchange rate went down slightly for the second consecutive week by 0.2 percent.
For next week, the currency pair is seen to trade between 55.45-55.95 while the range for Monday is expected between 55.65-55.85. (PNA)
