MANILA – The Philippine Stock Exchange index (PSEi) and the peso finished lower Friday as market players weighed the impact of the Bangko Sentral ng Pilipinas’ 50-basis-point rate hike against lingering inflation worries.
The local bourse’s main index shed 0.88 percent to 5,728.63 points, and the broader All Shares by 0.86 percent to 3,193.29 points.
Only the Financials index remained afloat among the sectoral indexes, rising 0.03 percent.
The Mining and Oil counter led the decliners after dropping 2.12 percent. It was trailed by Property, 1.88 percent; Holding Firms, 1.52 percent; Industrial, 1.51 percent; and Services, 0.01 percent.
Volume reached 2.41 billion shares amounting to PHP4.83 billion.
Decliners led advancers at 111 to 66, while 56 shares were unchanged.
Rizal Commercial Banking Corporation chief economist Michael Ricafort said investors are wary of the impact of the higher BSP rates, attributed to higher inflation expectations until next year, on their financing and the overall economy.
He forecast the PSEi’s initial support level to be around 5,600 to 5,700.
Meanwhile, the local currency ended the week’s trade at a new record of 63.61 against the U.S. dollar, down from the previous day’s 63.52.
The depreciation was also driven by the BSP rate hike, higher inflation exceptions, surging international crude oil prices, and the downward performance of the PSEi.
The local unit opened the day at 63.35, and traded between 63.35 and 63.62. The average for the day stood at 63.45.
Volume went down to USD1.28 billion from day-ago’s USD1.72 billion.
Ricafort expects the peso to trade between 63.30 to 63.80 levels against the U.S. dollar next week. (PNA)
