Philippine Stock Market Consolidating on Second Week

Global equities managed to eke out gains on perceptions of a less-hawkish tone of the US Fed which fuelled expectations that the rate hike may happen later than expected. US treasuries rose after a 50-basis-point cut in 2015 average end-of-year rate expectations of US Fed officials, which eased concerns over a possible rate hike in the near term.

The US dollar succumbed to profit-taking following the comments from the Federal Reserve.

The local equities market consolidated on a tight range for the second straight week as the PSEi was affected by the movement of US stocks as well as rebalancing exercises from several indices.

The local fixed income market saw little action ahead of last week’s Federal Open Market Committee (FOMC) meeting before ramping up activity with particular interest in long-tenor securities. US dollar strength remained to be the main theme driving the movement of the Philippine peso, causing it to inch closer to the Php45.00 level.

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