NextGen Day

The major index of the local bourse closed down on Tuesday as a result of poor investor sentiment brought on by the earnings reports of certain US-listed companies, which also damaged the peso.

The Philippine Stock Exchange index (PSEi) dropped by 0.63 percent, or 40.9 points, to 6,464.72 points following a two-day surge.

With All Shares down 0.52 percent, or 18.02 points, to 3,471.52 points, other counters also finished the day in the red.

The property was the category counter that lost the most money, dropping 1.26 percent.

Mining and Oil lagged behind it by 1.22 percent, followed by Holding Companies at 0.84 percent, Industry at 0.37 percent, Financials at 0.19 percent, and Services at 0.04 percent.

A total of 770.44 million shares, worth PHP3 billion, were traded.

At 114 to 61, decliners outnumbered movers, and 55 shares were flat.

“Philippine shares closed weaker, as investors parsed through mixed results from State Street and Charles Schwab,” said Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC).

After the financial institution revealed a decline in net interest income, deposits, and fee revenues in the first quarter of 2023, shares of Boston-based custodian bank State Street dropped.

Following the better-than-expected earnings in the first three months of this year, Charles Schwab’s stock started to teeter.

Investors are waiting and watching for the earnings reports of locally listed companies, according to Limlingan, who spoke about the local market.

One example is Sy-led BDO Unibank Inc., which from January to March this year reported a net income of PHP16.5 billion, compared to PHP11.7 billion during the same time last year.

The International Energy Agency (IEA), the West’s energy watchdog, predicted a rise in global demand given the recovery in Chinese consumption, which contributed to the rise in oil prices in the meantime on the international market.

West Texas Intermediate (WTI) crude oil futures rose by 0.4 percent to USD82.52 per barrel, while Brent crude oil futures advanced by 0.3 percent to USD86.31 per barrel.

The local currency, which started the day at 55.85 and ended it at 56.14, continued to depreciate against the US dollar.

It started trading at 56.00, which was weaker than its start of 55.35 the day prior.

It fluctuated between 55.98 and 56.23, averaging 56.094.

Volume increased to USD1.42 billion from USD1.37 billion in the prior session.

According to Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), the peso ended trading at 56.20, the lowest level since December 28, 2022, or more than three months ago.

He ascribed the rise in global crude oil prices, the weakening of the dollar, and the faster-than-expected 4.5 percent growth of the Chinese economy in the first quarter of this year as the causes of the peso’s depreciation.

On Wednesday, he expects the peso to fluctuate between 56.05 and 56.25 to the US dollar.

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