PSEi ends three-day rally but PHP remains firm amid risk-off sentiment

Profit-taking reigned both in the Philippines’ currency and equities markets on Thursday, resulting in little movement of the peso but a drop in the main stocks index. (Photo by Katrina.Tuliao (https://www.tradergroup.org) [CC BY 2.0)

The peso finished the day at 50.17 from the previous day’s 50.15, which a trader pointed to risk-off sentiment after minutes of the Federal Open Market Committee (FOMC) meeting last March 14-15 showed that US monetary officials were open to cutting the Federal Reserve’s bond buying program.

Also, the US government reported that jobs generation last March reached 263,000, higher than the 187,000 forecast but lower than the 298,000 last February.

The trader explained that with the economic report pointing to a still positive trend, investors’ hope for further hikes in the Fed rates was boosted.

This made the peso open flat for the day at 50.18 and traded between 50.15 and 50.20.

Average for the day stood at 50.17, almost unchanged from the previous session’s 50.16.

Volume of trade reached USD274.1 million, lower than the USD336 million a day ago.

The currency pair is seen to trade between 50.10 and 50.30 Friday.

The Philippine Stock Exchange index (PSEi) ended its three-day rally and finished Thursday at 7,565.32 points, down 0.25 percent, or 18.89 points.

All Shares followed with a decline of 0.07 percent, or 2.96 points, to 4,508.81 points.

Most of the sectors ended the day on the red, led by the Mining and Oil, which fell 1.68 percent.

Property dropped 0.93 percent, Services, 0.72 percent; and Financials, 0.05 percent.

On the other hand, Industrial rose 0.53 percent and Holding Firms by 0.01 percent.

Volume for the day involved two billion shares amounting to Php 9.5 billion.

Losers led gainers at 101 to 91 while 43 shares did not move.