NextGen Day

The major index of the local stock exchange fell on Friday as a result of a weaker US retail sales report, although the peso rose versus the US dollar.

To reach 6,496.50 points, the Philippine Stock Exchange index (PSEi) lost 1.07 percent or 70.3 points.

The All Shares index fell next, by 0.90 percent, or 30.76 points, to 3,400.13.

The majority of sectoral indicators likewise finished in the negative, including Holding Firms, 0.86 percent, Financials, 0.65 percent, Property, 1.90 percent, and Services, 1.79 percent. Mining and Oil concluded the day down 2.24 percent.

On the other hand, industrial increased by 0.13 percent.

The number of shares traded decreased to 558.77 million, worth PHP7.31 billion.

With 99 to 65 in favor of decliners, 40 shares remained unchanged.

According to Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC), “Philippine shares continued their decline as investors responded to data that increased concerns of an approaching recession and looked ahead to a slate of Federal Reserve speakers scheduled for Friday.”

According to reports, US retail sales declined 0.6 percent in November, which was a sharp decline from the 1.3 percent growth seen the month before.

This most recent print “indicated (that) inflation is hitting consumers more than expected, fuelling investors’ concerns that the economy is faltering,” according to Limlingan.

Relatively speaking, oil prices reversed their downward trend after it was caused by “increasing worries about the prospects for fuel demand due to a stronger dollar and more interest rate hikes by global central banks.”

West Texas Intermediate (WTI) crude oil futures decreased by 2.3 percent to USD75.51 per barrel and Brent crude oil futures by 2% to USD81.01 per barrel.

The peso, on the other hand, increased in value in relation to the US dollar, closing the week at 55.56 from its Thursday close of 55.685.

It started the day at 55.85, which was lower than the 55.85 of the prior session.

It fluctuated between 55.88 and 55.56, averaging 55.709 as a result.

Volume decreased from USD1.06 billion the day before to USD902.27 million.

Michael Ricafort, the chief economist at Rizal Commercial Banking Corporation (RCBC), attributed the strengthening of the peso in part to the BSP’s (Bangko Sentral ng Pilipinas) increased transparency in raising interest rates in line with potential Federal Reserve decisions.

The BSP’s signal, according to him, is “a sign of more transparency that may assist improved order, predictability, and stability in the local financial markets.”

The anticipated range for the currency pair for the coming week is between 55.30 and 55.80, while the range for Monday is between 55.45 and 55.65.

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