Prior to the release of the Bangko Sentral ng Pilipinas' (BSP) major rate decision, the…
PH equities increase before US economic news, while the peso declines
Prior to the release of some US economic data on Monday, the local stock barometer continued to increase, but the peso fell against the US dollar.
The PSEi, which measures activity on the Philippine Stock Exchange, increased by 0.76 percent, or 45.23 points, to 6,028.79 points.
The All Shares index rose, climbing 21.63 points, or 0.68 percent, to 3,216.67 points.
The majority of the sectoral indicators, including Services (1.34%), Financials (1.16%), Property (1%), Industrial (0.77%), and Holding Firms (0.15%), all increased during the day.
Only the Mining and Oil sector fell by 0.14 percent and ended the day in the red.
406.76 million shares, or PHP3.48 billion, were traded.
At 91 to 76, more shares advanced than declined, while 55 were unchanged.
The manufacturing index, September new home sales, gross domestic product, durable goods orders, and a measure of personal income are among the data from the US that will be released this week, according to Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC).
He claimed that despite some unimpressive earnings reports, US shares ended last week’s trading higher as Wall Street “completed a turbulent week on a high note.”
He continued, “Industry insiders think this came after the market got technically oversold.
Oil prices rose, according to Limlingan, “as expectations of stronger Chinese demand and a weaker dollar offset worries about a global economic slump and the impact of rising rates on fuel use.”
The local currency, which was last Friday at 58.75 against the dollar, completed the first trading day of the week at 58.87.
It started the day at 58.7, up from 58.92 on Friday of the previous week.
It fluctuated between 58.7 and 58.91, averaging 58.828.
Volume is down from the previous session’s USD897.5 million to USD633 million.
The local unit hit one of its two-week lows following the US dollar’s decline, according to Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), “amid reports that some Federal Reserve officials are concerned about overtightening despite earlier hawkish signal from Fed officials.”
Other factors, according to Ricafort, in the day’s foreign exchange trading include market sentiments from the recent improvement in the United Kingdom bonds market, a lowering of the US Treasury yield from its highest level in almost 15 years, and increases in the main index of the regional stock exchange.
Using the nation’s foreign reserves and the anticipated assistance from the seasonal inflows of remittances from overseas Filipino workers (OFWs), he said statements by Finance Secretary Benjamin Diokno about the continued government intervention to help address the peso’s weakness and prevent it from breaching the 60-level against the US dollar also factored in during the day’s currency trading.
He noted that a signal from Bangko Sentral ng Pilipinas Governor Felipe Medalla that at least one more rate hike of at least 100 basis points in the key policy rates of the central bank is anticipated to aid in stabilizing the local currency.
According to Ricafort, the peso will fluctuate on Tuesday between 58.70 and 58.90 to the US dollar.
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