Oliver 13 0 0 4 min to read

In anticipation of the US inflation announcement, PH equities are flat.

Cebuano Cebuano English English Filipino Filipino

Before the revelation of the US inflation rate for September, local shares finished Wednesday virtually unchanged, but the peso fell versus the US dollar.

PSEi increased 6.26 points, or 0.11 percent, to 5,853.63 points on the Philippine Stock Exchange.

All Shares increased by 0.10 percent, or 3.14 points, to 3,155.58.

Half of the sectoral gauges—Holding Firms, 0.25 percent; Property, 0.16 percent; and Industrial, 0.14 percent—also rose during the day.

Financials decreased by 0.19 percent, Services by 0.10 percent, and Mining and Oil declined by 0.44 percent.

1.27 billion shares, or PHP3.7 billion, were traded.

At 87 to 82, decliners outnumbered gainers, while 55 shares remained unchanged.

The head of sales at Regina Capital Development Corporation (RCDC), Luis Limlingan, claimed that investors were also waiting to see what would happen when the Federal Open Market Committee (FOMC) meeting from last September was made public.

Additionally, he mentioned the decline in US stocks and the increase in bond yields following the “BoE (Bank of England) announcement that its market intervention would soon end and pension funds have just three days to rebalance position.”

Investors assessed the effects of a recession against a possible reduction in oil supply, which caused oil prices to decline.

The peso lost ground versus the US dollar, falling from 58.865 to 58.965 at the day’s end.

It started the day sideways from its 58.97, at 58.95.

It fluctuated between 58.999 and 58.888, averaging 58.962 as a result.

Volume was USD505.37 million, down from USD642.35 million the day before.

Michael Ricafort, chief economist of Rizal Commercial Banking Corporation (RCBC), attributed the peso’s performance to hawkish comments made by Loretta Mester, president of the Federal Reserve of Cleveland, who cited the need to raise interest rates further because inflation is still not under control.

He said that the International Monetary Fund’s (IMF) decision to lower its global growth prediction for 2019 from 2.9 percent to 2.7 percent impacted investors’ mood.

These reasons are, however, offset by the Bankers Association of the Philippines’ (BAP) statement supporting the central bank’s actions against, among other things, speculative activities.

According to Ricafort, the peso was also helped by the Chinese Embassy in Manila’s statement that the Philippines had been put on a tourist blacklist due to crimes involving Philippine offshore gaming operators (POGO) operations.

He expects the peso to fluctuate on Thursday between 58.80 and 59.00 to the US dollar.

Cebuano Cebuano English English Filipino Filipino

We appreciate your reading. You may also consider sharing it with others.
Please comment below if you found this post interesting.
Be one of our DONOR / SPONSOR to support NextGenDay news website.
Please follow and like us:
Tweet 2k
0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments

Enjoy this blog? Please spread the word :)

Would love your thoughts, please comment.x