PSEi, peso weaken as Fed mulls rate hike

By Kris Crismundo

August 17, 2023, 7:40 pm

MANILA – Both the local stock market and the currency closed weaker on Thursday as the United States Federal Reserve mulled increasing interest rates anew.


The Philippine Stock Exchange index (PSEi) ended in the red territory, down by 45.12 points to 6,364.97.

Philstocks Financial, Inc. research and engagement officer Mikhail Plopenio said the local bourse was pulled down to 6,300 level “due to negative spillovers from the Wall Street amid hawkish statements from the Federal Reserve."

“The Fed in their latest minutes of the meeting stated that further monetary tightening could be necessary amid perceived inflation risks,” Plopenio said.

All shares at the PSE likewise declined by 16.61 points to 3,409.80.

Among sectors, only shares of Services closed in positive territory, slightly increasing by 4.08 points.

The biggest drop came from Holding Firms, down by 99.90 points; followed by Mining and Oil, down by 91.87 points; Industrial, down by 75.32 points; Financials, down by 4.33 points; and Property, down by 3.89 points.

“Opening in the green, the local bourse immediately dropped into the red territory for the rest of the session. Many are seen to stay on the sidelines as worries regarding the global and local economy are still present,” the analyst added.

He mentioned that net market turnover was at PHP4.68 billion.

Losers outpaced gainers at 95 to 74, with shares of 62 firms left unchanged.

Among index members, the International Container Terminal Services, Inc. logged the highest gains, up by 1.79 percent, while Universal Robina Corp. shed 4 percent.

Meanwhile, the Philippine peso depreciated by 0.25 to 56.77 to a US dollar from 56.52 in the last trading.

It opened the day strong at 56.67 compared to the previous day’s kick off at 56.80.

The peso and the dollar traded between a low of 56.77 and a high of 56.81.

Weighted average for the day settled at 56.68 to the greenback.

The volume of trade decreased to USD960.55 million from USD1.02 billion. (PNA)