PHP, PSEi skid on Fed rate hike

The Philippine peso and the local stock exchange slid Thursday after the Federal Reserve hiked key rates by 25 basis points.

The peso even lost Php 0.23 and finished the day at 49.96 from 49.73 Wednesday.

A trader said the US dollar appreciated not only by the hike of the Fed rates to between 0.5 percent and 0.75 percent on the back of firmer signs of economic growth in the US but also the possibility that there would be three additional hikes in 2017.

"The hike has been priced in but its realization is another thing since this provided more assurance to the markets of a better picture from the US," a trader said.

The local unit opened the day at 49.90, a drop from the 49.82 a day ago.

It traded between 49.96 and 49.87 bringing the average to 49.92.

Volume of trade reached USD438.9 million, higher than the USD356.9 million a day ago.

A range of between 49.90 and 50.20 is projected for the currency pair Friday.

The Philippine Stock Exchange index (PSEi) shed 1.05 percent, or 73.03 points, to 6,855.31 points.

All the other indices followed suit with the All Shares down by 0.95 percent, or 40.02 points, to 4,161.35 points.

Property fell 2.29 percent; Industrial, 1.21 percent; Mining and Oil, 0.96 percent; Services, 0.54 percent; Financials, 0.44 percent; and Holding Firms, 0.36 percent.

Shares traded for the day reached 1.4 billion amounting to Php 8.7 billion.

Losers led gainers at 117 to 66 while 40 shares remained unchanged.

Source: Philippines News Agency