DOWN. Both the Philippine Stock Exchange index (PSEi) and the peso slipped on Tuesday (Aug. 30, 2022) following Federal Reserve Chair Jerome Powell's speech, indicating the need to hike further in the coming months to address the elevated inflation rate. He said the rate tightening will have some impact on domestic growth. (PNA graphics)
MANILA — Risk-off sentiments following another statement for more tightening moves from the Federal Reserve resulted in another slip both for the main stocks gauge and the peso on Tuesday.
The Philippine Stock Exchange index (PSEi) started the shortened workweek on the negative after it fell 0.92 percent, or 62.23 points, to 6,690.27 points.
All other counters also finished the day in the negative territory, with All Shares down by 0.81 percent, or 28.95 points, to 3,548.50 points.
Services posted the highest drop among the sectoral gauges after it declined by 1.09 points and was followed by Holding Firms, 1.01 percent; Financials, 0.93 percent; Property, 0.85 percent; and Industrial and Mining and Oil, 0.53 percent.
Volume reached 1.26 billion shares amounting to PHP5.98 billion.
Losers surpassed gainers at 124 to 58, while 51 shares were unchanged.
“Philippine shares settled in the red amid mounting concerns over rising rates and tighter US monetary policy, which reflected the blunt remarks made by Fed Chair (Jerome) Powell in the recently held Jackson Hole (symposium),” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
He said Wall Street registered a sell-off last Friday following Powell’s speech that “appeared to extinguish hopes of the central bank changing its aggressive course I’d rate hikes in the months ahead.”
Meanwhile, the peso depreciated to 56.225 from 56.02 last Friday.
It opened the day at 56.15 and traded between 56.32 and 56.1. The average for the day stood at 56.243.
Volume reached USD 1.083 billion, higher than the USD804.5 million in the previous session. (PNA)
