The Philippine Stock Exchange list (PSEi) finished Monday's exchange sideways in accordance with its partners…
Peso closes at 56 against the US dollar as the PH stocks index declines.
The Federal Reserve took a more pessimistic position, as seen by the minutes of the Federal Open Market Committee (FOMC) meeting from last June, which put an end to the local stock exchange’s main index’s Thursday surge and further devalued the peso.
The Philippine Stock Exchange index (PSEi), which had been gaining for several days, dropped 1.44 percent, or 92.69 points, to 6,352.32 points.
The All Shares fell 1.09 percent, or 37.51 points, to 3,405.39. All other counters also ended the day in the negative.
Following a 2.31 percent decline, the Industrial sector topped the sectoral indices, followed by Services (1.97 percent), Mining and Oil (1.80 percent), Financials (1.62 percent), Property (1.50 percent), and Holding Firms (0.26 percent).
A total of 708.51 million shares, or PHP4.7 billion, were traded.
At 103 to 68, decliners outnumbered movers, while 51 shares remained the same.
After several days of gains following the release of the FOMC’s June meeting minutes, traders cashed in on the Philippine market, according to Luis Limlingan, head of sales for Regina Capital Development Corporation (RCDC).
Citing the FOMC meeting minutes, Limlingan stated that US monetary authorities maintained their solid commitment to confront the nation’s rising rate of inflation and the potential for a 75 basis point hike in the Fed’s benchmark interest rates at their meeting on July 26–27, 2022.
According to him, investors were also taking a wait-and-see approach to the day’s anticipated releases of the US weekly jobless claims and foreign trade data.
He added that worries about a worldwide recession were the reason oil prices dropped to a 12-week low.
According to him, US West Texas Intermediate (WTI) futures fell by 1% to USD98.53 per barrel, while Brent crude oil futures fell by 2% to USD100.69 per barrel.
The local currency lost ground to the US dollar from its close of 55.67 to 56.06 yesterday.
It started the day at 55.9, down from its opening price of 55.42 the previous session.
It fluctuated between 55.78 and 56.09, with a 55.909 average as a result.
Volume was lower at USD1.11 billion than it was on Thursday ($1.25 billion).
According to Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), the local unit completed the day at its lowest level since September 27, 2005, when it closed at 56.295.
The reduction in the nation’s foreign reserves to an all-time low of USD101.98 billion as of the end of June 2022 and the strengthening of the US dollar following the publishing of the FOMC meeting minutes for June 2022 are two variables that had an impact on the local currency during the day, he added.
However, he added, these factors are offset by the drop in oil prices on the global market and the Bangko Sentral ng Pilipinas’ (BSP) indications of additional rate increases.
According to Ricafort, the peso will fluctuate on Friday between 55.85 and 56.15 to the dollar.