Stocks, peso weaken ahead of Fed symposium - TrueID

Stocks, peso weaken ahead of Fed symposium

Philippine News AgencyAugust 27, 2021

MANILA – The Philippine Stock Exchange index (PSEi) declined on Friday as investors awaited Federal Reserve chairman Jerome Powell’s speech at the Jackson Hole monetary policy symposium later in the day, while the peso depreciated to the 50-level.

The main index shed 0.50 percent, or 33.91 points, to 6,786.62 points.

All Shares moved sideways with a drop of 0.02 percent, or 0.89 points, to 4,204.11 points.

Most of the sectoral indexes also finished the day in the negative territory, led by Property, which fell 1.57 percent.

Trailing behind were the Mining and Oil index, 1.48 percent; Holding Firms, 0.31 percent; and Services, 0.24 percent.

Volume totaled 1.62 billion shares amounting to PHP6.86 billion.

Losers led gainers at 100 to 84, while 64 shares were unchanged.

“Philippines shares closed in the red ahead of tonight’s Jackson Hole symposium,” said Luis Limlingan, Regina Capital Development Corp. head of sales.

Investors are waiting for what Powell would say in his speech at the Federal Reserve-hosted symposium in Jackson Hole, Wyoming, particularly on growth outlook and its impact on the Fed’s bond purchases tapering.

He said the US economy’s gross domestic product (GDP) print in the second quarter of this year stood at 6.6 percent, slightly lower than the consensus projection of 6.7 percent.

This growth print, Limlingan said, reflects “a somewhat strong consumer spending and US exports.”

“The consensus for next quarter’s GDP is 7 percent,” he added.

Meanwhile, the peso weakened against the US dollar after finishing the week at 50.08 against the US dollar from 49.98 on Thursday.

It opened the day at 50.06 and traded between 50.16 and 49.925, averaging at 50.04.

Read More