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Peso declines ahead of economic releases as PSEi finishes unchanged.

In advance of a number of economic releases for the week, the local stock index ended Monday unchanged, but the peso fell versus the US dollar.

The Philippine Stock Exchange index (PSEi) dropped by 6.312.03%, or 0.6%, or 3.9%.

Also down by 0.17 percent, or 5.9 percent, to 3,392.92 points, were All Shares.

Holding Firms, 1.36 percent; Property, 1.06 percent; and Industrial, 0.95 percent, comprised half of the sectors indices that saw gains during the day.

In contrast, the financial sector fell by 3.26%, services fell by 2.03%, and mining and oil fell by 0.30%.

With 434.45 million shares changing hands for PHP5.16 billion, volume remained low.

At 92 to 85, decliners outnumbered gainers while 55 shares remained unchanged.

As many economic data releases are anticipated for this week, Luis Limlingan, head of sales for Regina Capital Development Corporation (RCDC), stated that “Philippine investors welcomed the month with a flat start.”

The manufacturing Purchasing Managers Index (PMI) for the Philippines for July 2022 was 50.8, down from the previous month’s 53.9 index. However, since it went past the 50 threshold, this is still an expansion.

This week also sees the US’s June trade balance and July employment numbers reported, as well as multiple speaking engagements by Federal Reserve officials.

On the local front, the PSEi rebalancing report and the July inflation data will both be made public on Friday.

As attention moved to next week’s OPEC+ meeting and anticipation that it will kill US hopes for an increase in supply, oil prices increased in European trading, according to Limlingan.

According to him, the price of a barrel of Brent crude oil for September settlement increased by USD2.89 to USD110.03.

Additionally, the price of West Texas Intermediate (WTI) increased by 3.4 percent to USD99.67 per barrel.

The local currency was also weaker than the US dollar and ended the day at 55.31 as opposed to 55.13 last Friday.

It started the day at 55.35, which was higher than the previous session’s opening price of 55.75.

It fluctuated between 55.45 and 55.31, averaging 55.396.

Volume decreased from US1.58 billion to US1.05 billion.

Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), claimed that the weak Philippine Manufacturing PMI data caused the peso to experience a “healthy correction” during the day.

He claimed that although the most recent manufacturing PMI result was the lowest in the previous six months, it was “offset by greater bank loans growth to the fastest in more than two years.”

He added that the first incidence of monkeypox discovered in the nation late last week and new 5.5-month highs in new Covid local cases above 5,000 per day contributed to the peso’s decline.

According to Ricafort, the peso will fluctuate on Tuesday between 55.15 and 55.40 to the dollar.

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