MANILA, Philippines — The local stock exchange closed lower at the start of the week…
PSEi increases as investors wait and see, with the peso practically unchanged.
Despite investors’ wait-and-see attitude toward the direction of the Federal Reserve’s major interest rates, the main equity index rose once more on Tuesday, and the peso ended the day in a sideways pattern against the US dollar.
PSEi increased by 64.18 points, or 1.01 percent, to 6,418.94 points on the Philippine Stock Exchange.
With an increase of 0.81 percent or 26.99 points, All Shares lagged behind at 3,379.58 points.
The majority of the sectoral indicators also kept rising, lead by Holding Firms, which grew by 1.94 percent.
Services, 1.49 percent, Mining and Oil, 1.48 percent, Industrial, 1.40 percent, and Financials, 0.17 percent came in second and third, respectively.
Only the Property index experienced a loss during the day, falling 0.59 percent.
725.68 million shares, or PHP5.13 billion, were traded.
At 102 to 83, in favor of gainers, while 49 shares remained unchanged.
According to Luis Limlingan, head of sales at Regina Capital Development Corporation (RCBC), investors kept investing in the Philippine market despite their persistent caution over the Fed’s comments about rate hikes in the future.
This comes after Lael Brainard, the vice chair of the Federal Reserve, suggested that the central bank may soon stop tightening policy.
Christopher Waller, the governor of the Federal Reserve, added that while rates will rise, this shouldn’t be interpreted as a softening.
Oil prices dropped in the meantime, “dragged down by a higher dollar and record-high coronavirus cases in major Chinese cities that crushed hopes of the reopening of the economy of the world’s biggest crude importer,” according to Bloomberg.
West Texas Intermediate (WTI) futures decreased by 4.25 percent, according to Limlingan, while Brent crude oil futures fell by 3.58 percent.
The local currency, which started the day at 57.28 and ended it at 57.21, was sideways against the US dollar.
It traded between 57.47 and 57.2 and started the day at 57.3, where it was unchanged. For the day, the average level was 57.349.
Volume increased to USD766.9 million from USD720.63 million in the prior session.
According to Michael Ricafort, chief economist at Rizal Commercial Banking Corporation (RCBC), the peso gained from the ongoing stream of remittances from overseas Filipino workers (OFWs), which is a typical pattern as the year comes to a close.
“Consumer spending, which accounts for at least 73 percent of the GDP and is also a bright point for the economy,” Ricafort said of the dollar inflows from Filipino workers abroad.
According to him, the US dollar’s decline against other major currencies, the decline in the price of crude oil around the world, and another PSEi rise all helped to support the local currency.
“Market sentiment also supported following the discussions between US President (Joe) Biden and Chinese President Xi (Jinping) to ease tensions and stabilize the ties between the two countries/biggest economies of the world; as well as recent actions by China to support its real estate/property sector and to loosen some covid restrictions,” he continued.
According to Ricafort, the peso will fluctuate on Wednesday between 57.10 and 57.30 versus the US dollar.
Cebuano English Filipino
We appreciate your reading. You may also consider sharing it with others.
Please comment below if you found this post interesting.
Be one of our DONOR / SPONSOR to support NextGenDay news website.