Markets,peso lifted by Fed minutes
THE stock market and the peso had another good day on Thursday, both closing higher as investors took heart from a string of upbeat reports.
The benchmark Philippine Stock Exchange index (PSEi) climbed higher into 6,500-territory, adding 20.19 points, or 0.31 percent, to close at 6,530. The broader All Shares gained 6.28 points, or 0.18 percent, for a 3,442.04 close.
The peso, meanwhile, strengthened by 16 centavos to P56.78.
Analysts said the improvements followed the release of the minutes of the latest Federal Reserve meeting, which showed that the US central bank was leaning toward smaller rate hikes, and news that foreign portfolio investments had turned positive in October.
“Foreign funds also helped in the gains with foreign transactions registering a net inflow of P5.51 billion,” Japhet Tantiangco, research manager at Philstocks Financial, said.
Regina Capital Managing Director Luis Limlingan, meanwhile, said “Philippine shares sustained the rally as investors parsed through the latest FOMC (Federal Open Market Committee) meeting minutes, which pointed to a slowdown in Fed’s tightening in the coming months.”
“Note that markets will be closed on Thursday for the Thanksgiving holiday and will close early on Friday,” he added.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said both the stock market