On Tuesday, the Philippine Stock Exchange index (PSEi) rose, while the peso's performance versus the…
PH stocks index finished flat, and the peso fell
The major index of the local exchange closed flat on Tuesday due to foreign selling, while the peso fell versus the US dollar.
The Philippine Stock Exchange index (PSEi), which fell by 0.04 percent, or 2.82 points, to 6,582.38 points, finished in the negative.
All Shares then dropped 5.34 points, or 0.16 percent, to 3,431.65 points.
Holding Firms, Industrial, Mining and Oil all experienced daytime declines of 1.31 percent, 0.89 percent, and 0.18 percent respectively.
Financials increased by 0.36 percent, whereas Services increased by 0.16 percent, and Property increased by 0.98 percent.
Volume was minimal, totaling 705.24 million shares for PHP5.42 billion.
At 113 to 68, decliners outnumbered movers, while 43 shares remained the same.
The head of sales for Regina Capital Development Corporation (RCDC), Luis Limlingan, has repeatedly mentioned investors’ worry about additional increases in the Federal Reserve’s benchmark interest rates as having an impact on the regional stock market.
On December 13 and 14, the Federal Open Market Committee (FOMC) of the Fed will convene. It is largely believed that the FOMC will decide to raise key rates by 50 basis points.
Relatively speaking, the Philippine peso closed the day at 55.9, down from its close of 55.65 against the US dollar on Monday. Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), said this is still a healthy correction after the local currency appreciated last week.
Its early decline was evident when it opened trading at 55.64 as opposed to 55.4 the day before.
It fluctuated between 55.92 and 55.6, averaging 55.815.
Volume increased to USD1.12 billion, almost doubling the USD683.95 million in the prior session.
According to Ricafort, the peso’s performance was attributed to net foreign selling that took place during the day on the local exchange, a recovery in oil prices on the world market following a recent decline, and a rise in the 10-year US Treasury yield to one-week highs.
He said that these factors were, however, offset by the Philippines’ new record-high exports in October, which the Philippine Statistics Authority (PSA) revealed on Tuesday had increased by 20% year over year, outpacing the yearly rise of imports by 7.5 percent.
The expected exchange rate for Wednesday for the local currency is 55.80–56.00 to the US dollar.
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