Share prices closed flat Thursday as investors continue to digest the decision of the US Federal Reserve to raise rates anew, to a 22-year high. The peso closed up.
The Philippine Stock Exchange index (PSEi) was down 1.21 points, a 0.02 percent drop to 6,677.92.
The broader all shares index was up 0.99 point or 0.03 percent to 3,547.
Gainers edged losers 89 to 73 stocks unchanged. Trading turnover reached P3.83 billion.
The peso closed at 54.56 to the dollar, up from 54.62 on Wednesday.
The currency opened at 54.55 and hit a high of 54.47 and a low of 54.595. Trading turnover reached $914.1 million.
Most Asian currencies were edging upwards on Thursday after the US Federal Reserve delivered an expected 25 basis points (bps) rate hike, with market participants reading Fed Chair Powell’s tone as more “moderate,” Reuters reported.
The US Federal Reserve has raised rates for the 11th time in the last 12 times that it has met and kept the benchmark overnight interest rate in the 5.25-5.50 percent range. It will now continue to assess the possibility of more rate hikes in future.
The dollar index, which measures the strength of the greenback against six major rivals, dropped almost 0.2 percent to 100.91 at 0645 GMT.
A rate peak in the United States will lead investors to lean on risk-sensitive, higher-yielding Asian assets, while cementing stances of some Asian banks which had opted for a pause.
Juan Paolo Colet, managing director at China Bank Capital Corp., said investors digested the US Federal Reserve’s decision to hike its policy rate.
“We observed some resilience in the market as a drop in prices in the morning was practically reversed by a surge of buying in the afternoon session. The mixed reaction may be due to the widely expected move of the Fed, and while Chairman Powell kept the door open to further policy tightening this year,” he said.
“Markets are pricing only a 20 percent probability of another 25-basis point hike in September,” Colet added.
Most actively traded SM Prime Holdings Inc. was up P0.40 to P34. BDO Unibank Inc. was up P0.50 to P148.70. Ayala Land Inc. was up P0.45 to P27.45. International Container Terminal Services Inc. was up P6 to P213. SM Investments Corp. was down P15.50 to P922. Ayala Corp. was down P12.50 to P259. Metro Pacific Investments Corp. was steady at P488. Bank of the Philippine Islands was down P1.50 to P116.
