NextGen Day

Following a decline in US inflation last November, the major equity index recovered on Wednesday, while the peso appreciated against the US currency.

To reach 6,615.07 points, the Philippine Stock Exchange index (PSEi) increased by 0.50 percent, or 32.69 points.

Following All Shares, All Shares gained 0.52 percent, or 17.92 points, to reach 3,449.57 points.

The majority of sectoral indices also went up during the day, headed by Holding Firms’ 1.08 percent gain.

Financials trailed by 0.42 percent, Industrial lagged by 0.35 percent, Mining and Oil lagged by 0.30 percent, and Services lagged by 0.21 percent.

Volume amounted to 115.96 billion PHP, or over 5.5 billion.

At 102 to 73, more shares advanced than declined, while 37 were unchanged.

According to Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC), “Philippine equities climbed once more, supported by a cooler-than-expected CPI (consumer price index) report.”

Compared to the previous month’s 7.7 percent annual rate and the consensus estimate of 7.3 percent, the US CPI increased by 7.1 percent in November 2022.

The most recent inflation print, according to Limlingan, “raised hope that inflationary pressures could be abating.”

Later in the day, at the conclusion of its two-day meeting, the Federal Open Market Committee (FOMC) is generally anticipated to raise the Federal Reserve’s benchmark interest rates by 50 basis points, following four straight 75 basis point rises.

Investors in the local stock market, according to Limlingan, waited for the outcome of the Fed decision.

He said that the reduction in the trade deficit, which reached a 17-month low of USD3.31 billion last October “backed by higher external demand throughout the holidays,” helped to lift morale.

Oil prices increased as well, “bolstered by supply worries as a key pipeline supplying the US closed and Russia promised a production cut even as China’s relaxation Covid-19 regulations boosted the forecast for fuel demand.”

West Texas Intermediate (WTI) crude oil futures increased by 3% to USD73.17 per barrel, while Brent crude oil futures increased by 2.5 percent to USD77.99 per barrel.

In the meantime, the local currency strengthened from the previous day’s close of 55.9 to 55.745 versus the US dollar.

It was priced between 55.82 and 55.6 and started the day at 55.65. The daily average level was 55.701 points.

Volume decreased from USD1.12 billion the previous day to USD731.72 million.

According to Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), the lower-than-expected increase in the US inflation rate last November caused the peso to close at a fresh one-week low on December 9 from a close of 55.17.

According to Ricafort, the US dollar’s decline to its lowest level in more than five months, which was attributed in part to a decrease in the yield on the US 10-year Treasury, also benefited the peso during the day.

The projected range for the local currency’s price against the dollar on Thursday is 55.65 to 55.85.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

Feel free to Email Us for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---