Share prices rose yesterday as investors await the result of the US Fed’s policy-setting meeting overnight. The peso closed lower.
The Philippine Stock Exchange index (PSEi) was up 8.34 points to 6,856.77, a 0.12 percent hike.
The broader All Shares index was up 5.62 points or 0.16 percent to 3,572.10.
Gainers edged losers 101 to 92 with 43 stocks unchanged. Trading turnover reached P8.78 billion.
The peso closed at 56.13 to the dollar, down from 55.92 on Tuesday.
The currency opened at 55.87 and hit a high of 55.87 and a low of 56.16. Trading turnover reached $1.54 billion.
Asian currencies were largely trading down on Wednesday, ahead of interest rate decisions by the Indonesian and US central banks, Reuters reported.
Focus is on the US Federal Reserve policy meeting due later in the day where the risk is the new economic projections – the dot plot – could signal just two interest rate cuts, down from three, or a later start to the policy easing.
“The next step for the Fed is still a cut and a less restrictive rates environment,” said Christopher Wong, a currency strategist at OCBC.
Central banks in Asia’s emerging markets are waiting for a rate cut from the Fed, and a cut in June would open the door for them to start lowering their key rates given the progress on inflation, said Alex Loo, a macro strategist at TD Securities.
Luis Limlingan, managing director at Regina Capital and Development Corp., said investors kept to the sidelines “as many await the Fed decision on interest rates.”
“Though it is widely expected that the Fed will maintain its key policy rates, analysts will be taking into consideration any rhetoric from officials regarding the timing of the cutting of interest rates and their view on controlling inflationary pressures,” Limlingan said.
Most actively traded BDO Unibank Inc. was up P0.50 to P154. Bank of the Philippine Islands was down P0.90 to P121.80. International Container Terminal Services Inc. was up P7.80 to P314.80. SM Prime Holdings Inc. was up P0.45 to P32.80. Ayala Land Inc. was down P1.20 to P31.80. SM Investments Corp. was steady at P980. DigiPlus Interactive Corp. was up P0.60 to P10.60. Ayala Corp. was down P1.50 to P650.50. Metropolitan Bank and Trust Co. was up P0.10 to P64.40. Bloomberry Resorts Corp. was up P0.38 to P10.88.
