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PSEi ends its rally on rebalancing, and the peso rises.

After the local stock exchange was rebalanced and before the release of the US employment report on Friday, the main equity index halted its upward trend, but the peso appreciated versus the US dollar.

The Philippine Stock Exchange index (PSEi) dropped 1.20 percent, or 77.61 points, to 6,405.50 points following a three-day surge.

All Shares decreased by 0.86 percent, or 29.7 points, to 3,432.06 points, while all other counters followed the main index.

Property experienced the largest decline of the sectoral gauges, falling by 1.73 percent, followed by Services (1.54), Mining and Oil (1.46), Holding Firms (1.35), Financials (0.27), and Industrial (0.16).

Although there were 712.87 million fewer shares traded, the value increased to PHP12.71 billion.

At 108 to 66, decliners outnumbered advancers while 49 shares remained unchanged.

The local market recorded “greater than typical volume as index funds rebalanced their position to reflect the additional components,” according to Luis Limlingan, head of sales at Regina Capital Development Corp.

Semirara Mining and Power Corp. is one of the 30 companies that make up the most recent PSEi composition, but as of August 8 Security Bank Corp. is no longer included.

For a company to be included in the PSEi, it must have at least a 20% public float.

Along with this issue, investors are also anticipating the US jobs report for July, which is expected to show a decrease in job growth from the previous month’s 372,000 to 258,000, according to Limlingan.

He stated that “unemployment is anticipated to continue unchanged at 3.6 percent.”

The domestic inflation rate for July increased from 6.1 percent to 6.4 percent, the highest level since October 2018, however Limlingan noted that the most recent report “showed some signals of slowdown compared to the previous month.”

He claimed that worries about a potential recession in the second half of the year contributed to oil prices in the international market reaching their lowest levels since before Russia invaded Ukraine in February.

He also mentioned that US West Texas Intermediate declined by 2.3 percent to USD88.54 per barrel and Brent crude futures fell by 2.75 percent to USD94.12 per barrel.

The local currency improved from its Thursday close of 55.6 to end the week at 55.2 to the US dollar.

Its strength was evident right away as it started the day at 55.48, a higher opening price than the previous session’s 55.68.

It fluctuated between 55.5 and 55.15, averaging 55.294.

Volume increased to USD1.22 billion from Thursday’s USD986.6 million.

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