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The stocks index maintains advances but the peso bounces back

On Monday, the major stock index continued to rise, and despite touching the 55-level mid-trade, the peso depreciated against the dollar in accordance with its regional peers.

To reach 6,238.82 points, the Philippine Stock Exchange index (PSEi) increased by 0.34 percent or 21.26 points.

All Shares then increased by 14.84 points, or 0.44 percent, to 3,352.47 points.

Services, Industrial, and Holding Firms all saw daytime gains of 1.95 percent, 1.23 percent, and 0.18 percent, respectively, for the other half of the sectoral indicators.

Financials dropped by 0.88 percent, Mining and Oil by 1.33 percent, and Property by 0.04 percent.

682.61 million shares, or a paltry PHP5.24 billion, were traded.

At 98 to 84, more shares advanced than declined, while 54 remained unchanged.

The PSEi’s gains, according to Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC), can be partly attributed to investors’ wait-and-see attitude regarding the most recent bank lending statistics and the Philippines’ Purchasing Managers’ Index (PMI) manufacturing data.

Other catalysts for the week, according to Limlingan, include the US personal consumption expenditures statistics and the June 30 inauguration of President-elect Ferdinand Marcos Jr.

The peso increased in value versus the US dollar and ended the day at 54.78, up from 54.985 the previous Friday.

It started the day at 54.93, which was lower than the previous session’s opening price of 54.65.

The exchange rate for the local currency ranged from 55.15 to 54.78, yielding an average of 54.982.

Volume decreased from USD1.4 billion at the end of last week to USD1.18 billion.

Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), claimed that a “healthy correction” put a stop to the local currency’s eight-day slide.

The US University of Michigan gauge of long-term (5-10 years) consumer expectations was revised to 3.1 percent (from a preliminary 3.3 percent), but it was still the highest since more than 11 years ago or since March 2011, the economist said. “The peso also became stronger after the recent relief rally in the local and US/global stock markets,” he added.

Since its regional competitors were “generally marginally weaker vs. the US dollar by less than 0.5 percent,” Ricafort said that the peso’s 2.3 percent decline versus the dollar last week “has been overstated.”

As most Asean currencies are currently marginally stronger than the US dollar, he added, “Peso is likewise stronger.”

According to Ricafort, the peso has lost value vs the US dollar and other Asian currencies by about 7.4%.

In response, the Thai baht has fallen by 6.5%, the Malaysian ringgit by 5.7%, the Chinese yuan by 5.2%, and the Indonesian rupiah by 3.8%.

On Tuesday, he expects the currency pair to trade in a range of 54.60 and 54.90.

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