WebAdmin 8 0 0 4 min to read

PH stocks index rises while the peso declines to almost level 55.

The local stock market in general improved, with the major index closing the week higher, but the peso continued to deteriorate and came dangerously close to reaching the 45-level versus the US dollar.

The Philippine Stock Exchange index (PSEi) increased by 2.51 percent, or 152.33 points, to 6,217.56 points after days of trading in the red.

The All Shares Index rose next, climbing 52.90 points, or 1.61 percent, to 3,337.63 points.

The majority of sectoral indices saw gains throughout the day, including Property (3.81%), Holding Firms (3.34%), Financials (2%) Services (1.23%), and Industrial (0.47%).

After falling 0.75 percent, the Mining and Oil index was the only one to lose during the day.

604.006 million shares, or a meager PHP4.53 billion, were traded.

At 112 to 62, more shares advanced than declined, while 47 shares remained unchanged.

According to Luis Limlingan, head of sales for Regina Capital Development Corporation (RCDC), “Philippine stocks rose to conclude the week higher, lifted by dropping yields as the street continued to assess recession chances.”

According to him, investors would be watching for the most recent economic statistics in light of recession worries.

New home sales and the final consumer sentiment study from the University of Michigan, which will be released later in the day, are two data that will influence emotions.

He added that the latter “may be particularly significant for investors, as Fed (Federal Reserve) Chair Jerome Powell stated that an unexpected decline in the preliminary reading was one of the reasons the central bank boosted its benchmark interest rate by 75bps earlier this month.”

The peso, on the other hand, lost more value against the dollar from its previous day’s closing of 54.7 to 54.985.

It started the trading at 54.65, a significant decrease from its opening price of 54.4 the previous session.

The range of its trades, from 54.999 to 54.6, raised the day’s average to 54.839.

Volume increased to USD1.4 billion from USD1.06 billion the day before.

The peso closed at its weakest level since October 27, 2005, when it finished the session at 55.08, according to a report by Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael Ricafort.

He attributed this in part to the Bangko Sentral ng Pilipinas (BSP) key rates’ second 25 basis point increase of the year on Thursday. According to monetary authorities, this move is intended to address the country’s high inflation rate and is a component of the rollback of pandemic-related measures.

According to him, the BSP and Fed’s indications of future rate increases “increased the attractiveness/allure of the US currency compared to other major global/Asian currencies with higher short-term US interest rate returns, thereby leading to a stronger US dollar story in recent weeks/months,” he said.

He predicts that the next resistance level for the peso versus the US dollar will be $55.00.

Please follow and like us:
error1
fb-share-icon
Tweet 2k
fb-share-icon20
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments
error

Enjoy this blog? Please spread the word :)

0
Would love your thoughts, please comment.x
()
x