NextGen Day

The local major equity index continued to decline on Wednesday as a result of expectations for future increases in the Federal Reserve’s key rates, while the peso maintained its position versus the US dollar.

To reach 6,709.34 points, the Philippine Stock Exchange index (PSEi) lost 0.70 percent or 47.35 points.

To reach 3,539.46 points, All Shares dropped by 0.56 percent or 19.77 points.

The majority of sectoral indices also decreased throughout the day, including Holding Firms (-0.29%), Financials (1.53%), Property (1.49%), and Services (0.59%).

Mining and Oil also increased by 0.28 percent, while Industrial increased by 0.38 percent.

1.55 billion shares totaling PHP7.87 billion were traded.

101 shares were unchanged, 89 shares advanced, and 48 shares declined.

Luis Limlingan, the head of sales at Regina Capital Development Corporation (RCDC), stated that “Philippine shares fell ahead of earnings season and future anticipated rate hikes from the Fed (Federal Reserve).

The US government’s prediction that petroleum demand will reach a record next year was another factor Limlingan mentioned in explaining the surge in world oil prices.

West Texas Intermediate (WTI) and Brent crude oil prices both increased by 0.6 percent to USD80.10 and USD75.12 per barrel, respectively.

In contrast, the peso made little movement versus the US dollar and ended the day at 54.8, down from 52.87 on Tuesday.

It started the day at 54.8, an improvement over the previous day’s 54.95 openings.

It fluctuated between 55.04 and 54.75, averaging 54.928.

Volume increased somewhat from the day before, when it was a little over $1 billion USD.

According to Michael Ricafort, chief economist at Rizal Commercial Banking Corporation (RCBC), the local unit closed at its lowest level in more than six months or since closing the trade at 54.77 on June 28, 2022, in part because the Bangko Sentral ng Pilipinas (BSP) has given signals that future rate increases will only be in the range of 25 to 50 basis points, rather than 75 basis points.

Despite doubting a rate decrease, he said that a clearer BSP rate strategy “may nonetheless support/stabilize the peso exchange rate and overall inflation.”

The easing of China’s coronavirus disease 2019 (Covid-19) import restrictions, a drop in the price of oil on the world market year over year, and significant interest in the Philippines’ most recent global bond offering are other factors that supported the peso.

According to Ricafort, the peso will fluctuate on Thursday between 54.70 and 54.90 to the US dollar.

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 Contact NextGenDay.com 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.

---