PSEi retreats but PHP stays firm on Yellen’s Hawkish tone

MANILA-Foreign selling dominated the local bourse on Wednesday following the Hawkish tone of Federal Reserve chair Janet Yellen during her testimony before US lawmakers on Tuesday, which led the Phillipine Stock xchange index (PSEi) to retreat Wednesday.

Yellen's speech, which indicates the tightening of Federal monetary policy, boosted the greenback. The Philippine peso, however, stayed firm with only few centavos down against the US dollar.

The Philippine Stock Exchange index (PSEi) retreated by 0.45 percent, or 32.54 points, to 7,174.30 points after investors unloaded their holdings on regained strength of US Treasury yields and the dollar.

This after Yellen said a hike in the Fed rates was inevitable but declined to elaborate on the timing of the rate increase.

With this all the other indices in the local bourse, except for the Services ended the day in the red. Services rose 0.10 percent.

All Shares was pulled by 0.42 percent, or 18.33 points, to 4,356.25 points.

Financials led the sectors in terms of loses with 0.84 percent followed by Industrial, 0.55 percent; Mining and Oil, 0.44 percent; Holding Firms, 0.40 percent; and Property, 0.02 percent.

Volume of shares traded reached 2.6 billion amounting to Php 7.96 billion.

Losers led gainers at 108 to 87 while 47 shares were unchanged.

The local currency finished the day at 49.92 from 49.88 Tuesday.

A trader said developments in the local bourse as a result of the movements in US Treasury yields and Yellen's speech resulted in the restricted range the peso traded during the day.

After opening at 49.94, which was almost unmoved from the 49.95 a day ago, the peso traded between 49.90 and 49.95.

This brought the average trading level for the day to 49.92, little changed from the 49.89 in the previous session.

Volume of trade totaled to USD319.5 million, lower than the USD467 million Tuesday.

The peso is seen to trade between 49.75 and 49.95 Thursday. (PNA)

Source: Philippines News Agency

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