MANILA, Philippines — On Wednesday, optimism returned to the local stock exchange with news of…
As Wall Street falls, the PSEi falls with it; the peso rises.
MANILA, Philippines — On Tuesday, the local stock exchange’s main index opened the shorter workweek in negative territory, similar to its regional counterparts, on fears of stagflation, but the peso rose against the US dollar.
The Philippine Stock Exchange index (PSEi) fell 38.97 points, or 0.58 percent, to 6,720.93.
The Dow Jones Industrial Average fell 1.02 percent, or 37.08 points, to 3,584.62 points.
The majority of sectors indices fell during the day, with Mining and Oil down 7.67 percent, Property down 2.33 percent, Services down 2%, Industrial down 0.41 percent, and Financials down 0.02 percent.
Only the Holding Firms index increased by 0.43 percent during the day.
A total of 3.2 billion shares worth PHP23.2 billion were traded.
At 169 to 52, decliners outnumbered advancers, with 34 shares remaining unchanged.
“Philippine shares fell, but at a slower pace than the rest of the region, as investors worried about stagflation, with the CPI (consumer price index) report on Wednesday being the major focus this week,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
The United States and China are two countries that will release inflation statistics this week.
For example, last January, the US CPI hit a four-decade high of 7.5 percent, then surged to 7.9 percent and 8.5 percent in the following two months.
When inflation accelerates as a result of a recession, it is accompanied by weaker economic development and consistently high unemployment rates.
Investors’ concerns about economic development remained owing to the accelerating inflation rate in major economies, which hurt Asian stocks, which followed Wall Street.
The Nikkei 225 in Tokyo and the Hang Seng in Hong Kong, both of which were affected by anticipation of more tightening in the Federal Reserve’s key rates following the 25 basis point boost last March and the 50 basis point hike last week, both fell during the day.
Meanwhile, the local exchange was closed on Monday because to local and national polls, the results of which “will be the center of attention this week,” according to Limlingan, who added that the unofficial vote count was one of the factors affecting the day’s equities trading.
“For me, the fact that the election was peaceful and orderly showed that there was bargain shopping near the end.” “We performed significantly better than other places,” he remarked.
The release of the Philippines’ first-quarter gross domestic product (GDP) report on Thursday, as well as statements by numerous Federal Reserve officials, are expected to influence investor mood for the rest of the week, he noted.
Despite the strengthening of the greenback, the local currency gained ground versus the US dollar.
From 52.5 on Friday, the local currency completed the day at 52.37.
It started the day at 52.499, up from 52.48 the previous session.
It fluctuated between 52.499 and 52.34, resulting in a 52.402 average.
Volume was USD691.6 million, down from USD878.5 million at the conclusion of the previous week.