Peso, PSEi down ahead of BSP, Fed meetings

MANILA - - Risk-off sentiment ahead of the respective policy meetings of the Bangko Sentral ng Pilipinas (BSP) and the Federal Reserve this week weakened the Philippine peso and local equities market on Tuesday.

The local currency  ended the day’s trade at 50.51 from 50.36 a day ago, which was buoyed by Fitch Ratings’ upgrade of the country’s investment grade rating to ‘BBB’ from ‘BBB-’ with Stable outlook.

BSP’s policy-making Monetary Board (MB) will have its last rate setting meet this year on Thursday, Dec. 14, while the Federal Open Market Committee (FOMC) is scheduled to have its meeting from Dec. 12-13.

For the day, the local unit opened better at 50.33 from the previous session’s 50.42 start.

Its opening level is the currency’s strongest for the day after it dipped to 50.52, resulting in an average of 50.43.

Volume for the day reached USD665.6 million, higher than the USD509 million a day ago.

The trader expects the currency pair to trade between 50.30 and 50.50 Wednesday.

The drop was also seen on the Philippine Stock Exchange index (PSEi), which fell 0.29 percent, or 24.51 points, to 8,334.06 points.

All Shares followed with a decline of 0.39 percent, or 18.83 points, to 4,866.62 points.

Most of the sectors also finished the day on the red with Mining and Oil, registering the highest drop of 1.28 percent; followed by the Holding Firms, 1.03 percent; Services, 0.86 percent; and Industrial, 0.14 percent.

Property and Financials bucked the trend after these rose by 0.47 percent and 0.42 percent, respectively.

Volume reached 638.34 million shares amounting to PHP6.6 billion.

Losers led gainers at 115 to 87 while 52 shares were unchanged. (PNA)