MIXED. The main stocks index finishes the week up amid concerns over the growth impact of the Federal Reserve's key rate hike decisions. On the other hand, the peso posted its weakest level to date against the US dollar due to the strengthening of the greenback. (PNA graphics)
MANILA – The main stocks index finished the week up amid worries over the hawkish Federal Reserve stance but the peso posted its weakest to date.
The Philippine Stock Exchange index (PSEi) rose by 1.58 percent, or 104.37 points, to 6,692.65 points.
All Shares followed after it rose by 1.44 percent, or 50.49 points, to 3,548.53 points.
Most of the sectoral indices also gained during the day, led by Holding Firms after it inched up by 2.99 percent.
Industrial followed with a 1.72 percent jump, along with Services, 1.47 percent, and Property, 0.76 percent.
On the other hand, Mining and Oil fell by 0.68 percent and Financials by 0.21 percent.
Volume reached 1.02 billion shares amounting to PHP4.59 billion.
Advancers led decliners at 116 to 68, while 47 shares were unchanged.
“Philippine shares climbed up near the 6,700 level, ahead of the release of key August jobs report tonight,” said Luis Limlingan, Regina Capital Development Corp. (RCDC) head of sales. “Note that this week, stocks have been weighed down by hawkish comments from Federal Reserve officials signaling that interest rate hikes aren’t going away anytime soon.”
He said macroeconomic data, however, was strong, suggesting the global economy may continue with its recovery.
Nonfarm productivity was revised upwards to -4.1 percent for the period covering April to June, which is “slightly better than expected,” he added.
Citing reports, Limlingan said initial jobless claims in the US fell by 5,000 from a downwardly revised 232,000, which is lower than consensus expectations of about 248,000.
Meanwhile, the local currency weakened to 56.77, the weakest to date, surpassing its previous record-low of 56.45 hit on Sept. 27, 2004, according to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort.
It opened the day at 56.5, down from its 56.25 start in the previous session.
It traded between 56.9 and 56.5, resulting in an average of 56.791.
Volume reached USD936.95 million, down from USD1.087 billion on Thursday.
Ricafort traced the peso’s weakness to the strengthening of the US dollar and the improvement of the US’ 10-year Treasury yield to a new two-month high of 3.25 percent “amid more hawkish Fed (Federal Reserve) signals recently.” (PNA)
