MANILA – The possibility of Federal Reserve’s asset bond purchases tapering later this year resulted in the negative close of the local stock barometer and the weakening of the peso to 50-level against the greenback on Thursday.
The Philippine Stock Exchange index (PSEi) lost 0.58 percent, or 37.94 points, to 6,547.27 points.
All Shares slid by 0.42 percent, or 17.02 points, to 4,042.57 points.
Most of the sectoral indexes tracked the main gauge, led by Property after it fell by 2.63 percent.
The Mining and Oil index dropped by 0.55 percent, Financials by 0.51 percent, and Holding Firms by 0.22 percent.
On the other hand, the Services counter gained 0.65 percent and Industrial, 0.46 percent.
Volume reached 961.995 million shares amounting to PHP4.77 billion.
Losers surpassed gainers at 108 to 80, while 34 shares were unchanged.
“Philippine shares retreated after U.S. Fed(eral) Vice Chairman Richard Clarida announced that the central bank could taper the asset bond purchases later this year, opening up the possibility of rate hikes in 2023,” said Luis Limlingan, Regina Capital Development Corporation head of sales.
He said Clarida is also optimistic about the continued recovery of the world’s largest economy.
Meanwhile, the peso ended the trade at 50.235 against the US dollar, weaker than its 49.75 close a day ago.
It opened the day sideways at 49.83 and traded between 49.76 and 50.37.
The average level stood at 50.012.
Volume reached USD1.47 billion, higher than the USD1.04 billion a day ago. (PNA)
