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On Thursday, the main stock index took a break, and the peso, after reaching the 59-level mid-trade, ended the day nearly unchanged versus the US dollar.

The Philippine Stock Exchange index (PSEi), which had been declining for several days, increased by 0.93 percent, or 54.57 points, to reach 5,934.25 points.

All Shares increased by 0.80 percent, or 25.24 points, to 3,190.88 points in the following period.

Holding Firms led the sectoral gauges as the main index increased by 2.26 percent.

The Mining and Oil index lagged behind it by 1.85%, followed by Industrial by 1.26 percent, Financials by 0.79 percent, and Property by 0.30 percent.

Only the Services index, which fell by 0.89 percent, ended the trading session in the red.

With 658.93 million shares changing hands for PHP5.2 billion, volume remained low.

At 121 to 76, more shares advanced than declined, while 42 were unchanged.

According to Luis Limlingan, head of sales for Regina Capital Development Corporation (RCDC), “Philippine equities ended their losing skid, rebounding significantly on the BoE’s (Bank of England) remarks that it would acquire bonds to strengthen its currency and suppress inflation.”

The BoE announced on Wednesday that it will begin temporarily purchasing long-dated UK government bonds to “establish orderly market conditions.”

This follows the central bank’s recent announcement that it would sell “gilts,” or government bonds, as part of its quantitative tightening policy.

“It is a dramatic reversal in the monetary tightening measures enacted this year by most central banks to contain inflation,” Limlingan said of the temporary bond-buying program.

In terms of the local economy, he stated that “investors continued to place wagers that the BSP (Bangko Sentral ng Pilipinas) could implement an off-cycle rate adjustment, coupled with growing concerns about a worldwide recession.

According to him, the price of gold rose by around 2% on the global market as “a retreat in the dollar revived some of its safe-haven charms.”

However, he said that “the non-yielding precious metal remained close to a two-and-a-half-year trough due to prospects of fast rate hikes.”

Limlingan says spot gold increased by 2% to USD1,660.62 per ounce, recouping prior losses to reach its lowest level since April 2022.

Following “unexpected drawdowns in US crude and gasoline supplies,” oil prices rose.

He claimed that US West Texas Intermediate (WTI) crude prices increased by 4.65 percent to USD82.15 per barrel, and Brent crude futures increased by 3.5 percent to USD89.32 per barrel.

The local currency ended the day at 58.97 from 58.98 the day before and maintained its position against the US dollar.

From 58.95 on Wednesday, it started the day at 58.87, moving sideways.

It fluctuated between 59 and 58.75, with a 58.91 average.

Volume decreased from USD1.2 billion the previous day to USD902.86 million.

Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), claimed that the overnight decline in global stocks and bonds and the subsequent decline in the US dollar helped bolster the peso.

Ricafort mentioned the upward correction in US stock markets, followed by a five-day decline in the local stock market.

According to the local monetary authorities, the peso exchange rate and overall inflation might stabilize the peso exchange rate, which also hinted at potential off-cycle or surprise increases in local policy rates and more intervention in the local foreign exchange markets.

He continued, “The peso slightly higher after crude oil prices still around eight-month lows or since early January 2022, along with the recent decline in other major global commodity prices, that could lead to lower net imports/narrower trade deficits, additional rollback in local fuel pump prices, and lower inflationary pressures/overall inflation, going forward.”

The next resistance level for the peso, according to Ricafort, will be between 59.00 and 59.25, while the immediate support range is expected to be between 58.50 and 58.75.

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