MANILA -- Investors' expectation of as much as a 50-basis point cut in the Federal Reserve’s key rates late this month further lifted the Philippine Stock Exchange index (PSEi) on Friday but the peso retreated to the 51-level against the US dollar.
The main equities index rose 0.15 percent, or 12.02 points, to 8,270.07 points, which Regina Capital managing director Luis Limlingan said was also fueled by hopes of inspiring news ahead of President Rodrigo Duterte’s 4th State of the Nation Address (SONA) on Monday, among other positive developments, domestically and overseas.
He noted that, for one, New York Fed president John Williams hinted that US monetary officials were poised to “act quickly” should the US economy slow down.
Market players read this as a hint of an aggressive slash in the Fed’s key policy rates since growth of the world’s largest economy has been affected by the simmering trade issues between the US and China, among others.
The Federal Open Market Committee (FOMC) will have its meeting on July 30-31.
Similarly, crude oil prices increased following reports that a US Navy ship damaged an Iranian drone in the Strait of Hormuz, situated between the Persian Gulf and the Gulf of Oman, and is the world’s most important oil passageway.
With these positive news, most of the counters tracked the main index although the All Shares was little moved at 5,010.71 points, up 0.03 percent or 1.73 points.
Most of the sectors ended with increases, led by Mining and Oil, which rose 2.21 percent.
Financials increased by 0.34 percent, Property, 0.25 percent; and Holding Firms, 0.11 percent. Industrial and Services, meanwhile, fell by 0.45 percent and 0.02 percent, respectively.
Volume reached 1.46 billion shares amounting to PHP6.7 billion.
Losers led gainers at 102 to 94 while 53 shares were unchanged.
On the other hand, the local currency ended the week at 51.04 from Thursday’s 50.97 close, which a trader pointed to strengthening of the greenback on Fed rate cut expectations.
It opened the day at 51.00, better than its 51.085 start in the previous session. It traded between 51.06 and 50.92 resulting in an average of 50.977.
Volume declined to USD1.094 billion from the previous session’s USD1.219 billion.
The currency pair is seen to trade between 51.00 and 51.20 on Monday. (PNA)
