MANILA, Philippines – Both the benchmark stock index and the peso advanced on Friday, aided…
As US debt ceiling talks are suspended, stocks and the peso decline.
The major equity index and the peso closed down on Monday due to risk-off sentiments partly brought on by worries about the US debt ceiling.
To reach 6,620.83 points, the Philippine Stock Exchange index (PSEi) lost 0.66 percent or 43.72 points.
All Shares then dropped 14.34 points, or 0.40 percent, to 3,534.03 points.
The majority of sectoral indexes, including Financials (1.11%), Property (0.71%), Industrial (0.68%), Holding Firms (0.45%), and Services (0.34%), likewise closed in the red.
Only the Mining and Oil index, which finished the day up 0.08 percent, could maintain its position.
1.73 billion shares, or PHP7.03 billion, were traded.
At 116 to 67, losers outnumbered winners, while 47 shares remained unchanged.
The PSEi’s performance, according to Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC), can be attributed to the White House and US lawmakers’ decision to halt ongoing negotiations because of “big differences” over a plan to raise the country’s current USD31 trillion borrowing limit.
This is despite the deadline for the US to avoid default on June 1.
Due to this occurrence, spot gold prices increased by 1.2 percent on the international market to USD 1,981.79 per oz., and US gold futures prices increased by 1.1 percent to USD 1,981.60 per oz.
Following the break in the debt ceiling negotiations, oil prices dropped on the global market.
West Texas Intermediate (WTI) crude oil futures decreased to USD71.69 per barrel and Brent crude oil futures to USD75.58 per barrel.
In the meantime, the peso fell against the US dollar and ended the day at 55.82 instead of last Friday’s 55.67.
It traded between 55.84 and 55.65 and began the day at 55.67. For the day, the average level was 55.797.
Volume increased from USD979.6 million in the previous session to USD981.5 million.
Michael Ricafort, the chief economist of Rizal Commercial Banking Corporation (RCBC), attributed the peso’s performance to the US debt ceiling negotiations and the decreased likelihood of a Federal Reserve rate hike next month.
He expects the peso to fluctuate on Tuesday between 55.70 and 55.90 to the US dollar.
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