NextGen Day

MANILA, Philippines — On Friday, the major stock index recovered and surged to the 7,000 level, but the peso fell against the US dollar due to a drop in oil prices on the international market.

The Philippine Stock Exchange index (PSEi) rose 1.33 percent to 7,018.02 points or 91.99 points.

All other indices trailed it, with the All Shares rising 1.03 percent, or 38.22 points, to 3,739.45 points.

Property rose 1.90 percent, followed by Financials, 1.51 percent, Mining and Oil, 1.41 percent, Industrial, 1.16 percent, and Holding Firms, 0.03 percent. Services led the sectoral gauges with a rise of 2.45 percent.

With 659.97 million shares worth PHP4.2 billion traded, the volume was light.

At 101 to 66, advancers outnumbered decliners, with 54 shares remaining unchanged.

“Investors continued to mull a hawkish readout of minutes from the Fed’s (Federal Reserve) last policy-setting meeting that suggested more aggressive monetary tightening is underway as Philippine shares bounced back to close above 7,000,” Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said.

The Fed raised its benchmark policy rates by 25 basis points in March, the first increase since December 2018.

This comes after inflation hit a four-decade high of 7.5 percent in January and then increased to 7.9% in February.

Investors are also keeping an eye on the Ukraine-Russia conflict, according to Limlingan, after the former sought more armaments from the North Atlantic Treaty Organization (NATO).

According to rumors, the European Union (EU) and the United States are mulling a Russian coal ban.

In addition, the US Senate enacted a bill prohibiting Russian oil and gas imports, causing the price of West Texas Intermediate (WTI) crude oil to fall by 0.6 percent to USD96.03 per barrel and the price of Brent crude oil to fall by 0.5 percent to USD100.58 per barrel.

Meanwhile, the peso fell against the US dollar, finishing the week at 51.59, down from 51.42 the day before.

It started the day at 51.45, down from 51.37 the day before.

It traded between 51.62 and 51.45, averaging 51.528 for the day.

The volume reached USD1.056 billion, up from USD885.5 million the day before.

In response to questions from the Philippine News Agency, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s weakness to an increase in the benchmark 10-year US Treasury yield to a new three-year high, “breaching above 2.60 percent levels amid recent hawkish Fed signals that led to a stronger gauge of the US dollar vs. major global currencies to near two-year highs.”

The greenback’s strength, however, was matched by a reduction in oil prices on the worldwide market, according to Ricafort.

According to him, the peso’s primary support levels in the last five months have been around 50.85 to 50.95.

The peso is expected to trade between 51.30 and 51.70 against the US dollar next week, according to Ricafort.

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.

---