PSEi recovers, PHP slips vs USD on hints of more Fed rate hikes

MANILA-- Lack of fresh leads overseas boosted local equities Tuesday but the Philippine peso weakened as Federal Reserve officials continue to hint of more rate hikes this year.

The Philippine Stock Exchange index (PSEi) rose 0.09 percent, or 6.74 percent, to 7,323.31 points.

A trader said investors had been hearing dovish tones from Fed officials regarding additional rate hikes but no specifics had been given.

All Shares tracked the main index and went up 0.02 percent.

It was, on the other hand, a balanced mix among the sectors with the Services posting the highest increase of 0.65 percent followed by Financials, 0.15 percent, and Property, 0.03 percent.

Mining and Oil, Industrial, and Holding Firms fell 0.10 percent, 0.03 percent, and 0.003 percent, respectively.

Total volume involved 1.39 billion shares amounting to Php 7.67 billion.

It was also a balanced number among the losers and winners at 68 shares each while 46 shares were unchanged.

On the other hand, the peso shed Php 0.09 and closed at 50.18 from 50.09 Monday.

Another trader said investors remained optimistic on the path of Federal funds rate despite the lack of clearer period when this would happen.

The peso opened sideways at 50.10 from day-ago's 50.15 start.

It traded between 50.10 and 50.19 resulting to an average of 50.16.

Volume of trade reached USD289.5 million, lower than the USD441.3 million a day ago.

The local unit is seen to trade between 50.10 and 50.30 Wednesday.

Source: Philippines News Agency