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On Thursday, the major index of the local stock exchange was moving upward despite signs of further Federal Reserve tightening actions and a strengthening peso relative to the dollar.

To reach 6,761.33 points, the Philippine Stock Exchange index (PSEi) increased by 0.64 percent or 42.83 points.

With a gain of 13.38 points (0.38 percent), or 0.38 percent, All Shares fell behind at 3,550.45 points.

The majority of the sectoral gauges also increased during the day, with Financials taking the lead after rising by 2.06%.

Industrial, 0.67 percent, Holding Firms, 0.49 percent, and Property, 0.06 percent, came in second and third, respectively.

Services, on the other hand, decreased by 0.003 percent while Mining and Oil fell by 0.82 percent.

1.85 billion shares, or PHP6.89 billion, were traded.

At 93 to 84, more shares rose than fell, while 53 were unchanged.

According to Luis Limlingan, head of sales for Regina Capital Development Corporation (RCDC), “Philippine equities notched another positive close, without any breaks so far this year, as investors looked past the FOMC (Federal Open Market Committee) meeting minutes that showed the Fed (Federal Reserve) would remain aggressive in its policy to tame high inflation.

Limlingan stated that the results of the November 2022 Job Openings and Labor Turnover Survey (JOLTS) in the US have barely altered at 10.5 million, citing several recent economic data releases.

He said that following a 30-month uptick, the Institute for Supply Management (ISM) manufacturing index likewise indicated a fall, “signaling that interest rate increases may be slowing the economy.”

The US manufacturing sector shrank in November of last year, dropping from a 50.2 percent index to 49 percent. A score above 50 indicates expansion, whereas a score below 50 indicates the opposite.

On the home front, Limlingan said that although inflation rose to 8.1 percent last December from 8 percent the previous month, the highest level since November 2008, it is still moving more slowly than the market anticipates.

The peso recovered and closed the day at 55.75 from 55.91 the day before, mirroring the gains of the primary index of the local stock exchange.

It started the day at 55.92, essentially unchanged from its opening price of 55.95 from the prior session.

It fluctuated between 55.75 and 56.025, averaging 55.898.

Volume was USD1.06 billion, down from USD1.27 billion the day before.

Michael Ricafort, the chief economist at Rizal Commercial Banking Corporation (RCBC), attributed the peso’s strengthening in part to the slower-than-anticipated domestic inflation rate for December 2022, the drop in crude oil prices globally, and the reports of investment commitments from China totaling about USD22.8 billion that was made during President Ferdinand R. Marcos’ official visit to China from January 3 to 5.

He claimed that the peso benefited from increases in the key index of the domestic stock market as well as the weakening of the US currency.

The anticipated trading range for the currency pair on Friday is 55.65 to 55.85.

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