The major stock index increased once more on Tuesday, driving all local market counters to…
PSEi increases again due to decreasing inflation; the peso declines
A day after the publication of a reduced February inflation rate, the local stock exchange’s main index rose once more on Wednesday, while the peso fell versus the US dollar.
To reach 6,711.49 points, the Philippine Stock Exchange index (PSEi) increased by 0.10 percent or 6.37 points.
The All Shares index, on the other hand, decreased by 0.13 percent, or 4.55 points, to 3,585.66 points.
Financials, 0.19 percent; Services, 0.19 percent; and Holding Companies, 0.06 percent) made up half of the sectoral indices that had gained for the day.
On the other hand, property lost 0.96 percent, industrial lost 0.28 percent, and mining and oil lost 2.86 percent.
A total of 870.39 million shares, or PHP5.5 million, were traded.
At 120 to 72, decliners outnumbered gainers while 46 shares remained unchanged.
In the meantime, the peso continued to fall against the US dollar and ended the day at 55.32 instead of Tuesday’s closing of 55.00.
The local currency depreciated from its opening price of 55.03 in the previous session to 55.3 to start the current session.
It fluctuated between 55.48 and 55.24, averaging 55.397.
Volume increased by USD 896.8 million from the previous day to USD1.02 billion.
Michael Ricafort, the chief economist of Rizal Commercial Banking Corp., attributed the peso’s devaluation in part to the country’s decline in gross international reserves (GIR) in February, the US dollar’s decline against major currencies, and the Federal Reserve’s hawkish signals.
The foreign reserves of the Philippines decreased from USD100.7 billion at the end of January to USD99.3 billion as of the end of February this year, according to a report released on Tuesday by the Bangko Sentral ng Pilipinas (BSP).
The national government’s withdrawals of deposits from the central bank to satisfy obligations denominated in foreign currencies and the BSP’s downward revisions of its gold holdings have both been cited as causes of the fall.
According to Ricafort, the peso is still stable versus the dollar despite its decline, in part because of the PSEi’s ongoing ascent, which was fueled by news that the inflation rate slightly decreased in February of last year from January’s 8.7 percent to 8.6 percent.
The projected range for the local currency’s price against the dollar on Thursday is 55.25 to 55.45.***
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