MANILA – Statements about keeping the current Federal Reserve rates for at least the next three years affected investors sentiment resulting in the negative close of both the Philippine Stock Exchange index (PSEi) and the peso Thursday.
The main equities index shed 0.05 percent, or 3.10 points, to 5,943.52 points.
All Shares declined by 0.09 percent, or 3.18 points, to 3,562.63 points.
Most of the sectoral indices tracked the PSEi led by the Mining and Oil, which fell by 1.32 percent.
Industrial slipped by 0.44 percent and Property and Holding Firms, both by 0.26 percent.
Volume totaled to 952.32 million shares amounting to PHP6 billion.
Losers led gainers at 106 to 78, while 58 shares were unchanged.
In a briefing after the Sept. 15-16, 2020 policy meeting of the Federal Open Market Committee (FOMC), Fed chairman Jerome Powell said interest rates, which currently are between zero to 0.25 percent, are expected to remain at least until 2023.
“The PSEI was generally muted post the press conference by the Fed Chairman (wherein he said) that rate will stay low (un)til 2023 but he struggled to address the large balance sheet risk,” said Luis Limlingan, Regina Capital Development Corporation head of sales.
He said that while Powell noted that recovery of the US economy has been faster-than-expected, activity remains below the pre-pandemic levels.
With the faster-than-expected recovery of the world’s largest economy, the Fed revised its 2020 growth forecast for this year from -6.5 percent to -3.7 percent.
At home, the risk-off sentiment in the local bourse affected the peso, which closed the day’s trade at 48.51 to a US dollar from 48.385 finish a day ago.
It opened the day at 48.435, little moved from its 48.43 start a day ago.
It traded between 48.53 and 48.4, resulting in an average of 48.454.
Volume totaled to USD710.9 million, higher than the USD631.95 million Wednesday. (PNA)
