Potential US Fed pause buoys local equities
The benchmark Philippine Stock Exchange index (PSEi) held steady above 6,200 as investors placed bets on a potential pause in US interest rate hikes while hoping for a peaceful resolution to the Israel-Hamas war.
The PSEi closed Tuesday’s session higher by 0.19 percent, or 11.91 points, to 6,264.07 while the broader All Shares index added 0.18 percent, or 6.22 points, to 3,386.27.
“The local stock index notched a gain on the back of remarks by top Federal Reserve officials that indicate a potential pause in rate hikes if US bond yields remain elevated.
The recovery in investor sentiment was also helped by the strong Philippine export print in August,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said on Tuesday. PSE subsectors were mixed during the session.
Mining and oil was the top performer with a 1.22-percent gain, followed by property (+0.58 percent), financials (+0.56 percent) and services (+0.53 percent). Holding firms and industrials were down 0.42 percent and 0.04 percent, respectively.
A total of 688.96 million shares valued at P4.54 billion changed hands on Tuesday while net foreign selling amounted to P275.32 million, data from the stock exchange showed.
