MANILA – Risk sentiment further improved Wednesday that resulted in the rise of Philippine main stocks gauge and the sideways close of the peso following the 50-basis-point reduction in the Federal Reserve’s key rates.
The Philippine Stock Exchange index (PSEi) rose 1.13 percent, or 76.72 points, to 6,867.26 points.
All Shares increased to 4,089.06 points, up by 0.66 percent or 26.81 points.
It was, however, a mix among the sectors with Property, Holding Firms, Financials, and Industrial rising by 1.91 percent, 1.01 percent, 0.73 percent, and 0.40 percent, respectively.
On the other hand, Mining and Oil index fell 0.50 percent and Services by 0.19 percent.
Volume totaled to 652.14 million shares amounting to PHP6.1 billion.
Decliners led advancers at 123 to 74, while 37 shares were unchanged.
BPI Research said anticipations for more monetary and fiscal stimulus from other countries to address the impact of Covid-19 lifted most markets, including the Philippines.
This, after the Fed slashed its target range to between 1-1.25 percent by 50 basis points, the first after the same decision in 2008 during the global financial crisis, to offset the negative economic impact of Covid-10.
The United States has reported nine casualties from Covid-19.
The peso ended the day at 50.55 against the greenback from its 50.69 close a day ago.
It opened the day at 50.68, sideways from its 50.65 start in the previous day.
It traded between 50.73 and 50.54, resulting in an average of 50.58.
Volume totaled to USD1.19 billion, lower than the USD1.24 billion a day ago.
BPI Research forecasts the peso to trade between 50.45 and 50.75 to a US dollar on Thursday. (PNA)
