2013 Federal Reserves’ Growth Concerns

By Joann Santiago

The local bourse capped the first week of the year with fresh record-highs while the peso weakened against the dollar tracking counterparts overseas due the Federal Reserves’ growth concerns among others.

The composite index registered another record-close Friday at 5,971.45 points, up 0.63 percent or 37.40 points from day-ago’s 5,934.05-level.

This is the third day in a row that the main index posted new record-close in the first week, a three-trading day, of 2013 after ending 2012 at 5,812.73-level.

Its intra-day close is also the highest-to date at 5,965.05 points.

“The PSEi managed to avoid the general downtrend in Asia today, an encouraging sign for the sustainability of last year’s impressive performance.

These positive developments, including favorable inflation data, help support our good start to the year," PSE President and Chief Executive Officer Hans B. Sicat said in a statement.

Also, the broader all shares index rose by 0.41 percent or 15.55 points to 3,778.43 points against the previous day’s 3,762.88 points.

Among the sectoral indices only the industrial index ended the day on the red.

Value turn-over reached P7.59 billion after 1.62 billion shares changed hands.

Advancers led losers at 98 to 67 while 49 stocks were unchanged.

On the other hand, the peso shed P0.14 against the dollar after finishing the day at 40.91 from Thursday’s 40.77 close.

It started the day at 40.85, almost unchanged from the 41.81 opening in the previous day.

Its closing level is the local currency’s weakest trade for the day while strongest was at 40.81. The brought the average in 40.85.

Volume of trade amounted to US$ 1.44 billion.

A trader foreign exchange trading volume went up but investors are worried resulting to the weakening of the local currency against the dollar.

The negative pull was attributed to the report about the release of the December 2012 policy meeting of the Federal Reserve, wherein US monetary officials are worried about the possible negative impact of the central bank’s stimulus program on the financial markets.

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