MANILA, Philippines — Investors were concerned about geopolitical tensions between the US and Russia over…
PSEi declines once more due to bad developments outside; the peso gains
Due partly to some unfavorable developments outside, the main stock index fell once more on Friday, but the peso rose versus the dollar.
To reach 5,983.56 points, the Philippine Stock Exchange index (PSEi) lost 1.20 percent or 72.43 points.
It then fell 0.89 percent, or 28.57 points, to 3,195.04 points for All Shares.
The majority of sectoral gauges—Property, 2.43 percent; Services, 2.08 percent; Financials, 1.86 percent; and Holding Firms, 0.15 percent—also concluded the week in the red.
However, Industrial increased by 0.49 percent, while Mining and Oil increased by 0.17 percent.
With 429.16 million shares changing hands for PHP4.51 billion, volume remained low.
At 104 to 67, decliners outnumbered gainers, while 48 shares remained unchanged.
The performance of the indexes on the local stock exchange during the day was ascribed by Regina Capital Development Corp.’s head of sales, Luis Limlingan, to rising bond yields and a wide range of business profits.
According to reports cited by Limlingan, existing house sales in the United States decreased by 1.5 percent in September to a higher-than-anticipated seasonally adjusted yearly rate of 4.71 million units.
The price of crude oil futures scarcely changed, with Brent oil ending at USD92.57 per barrel and West Texas Intermediate at USD85.71.
On the other hand, the local currency closed the week at 58.75 from the previous session’s close of 58.94.
It traded between 58.97 and 58.68 and started the day at 58.92 flat. For the day, the average level was 58.83.
Volume increased to USD 897.5 million from USD 707.45 million the day before.
The peso’s performance, according to Michael Ricafort, chief economist at Rizal Commercial Banking Corp., can be partly attributed to signals from Finance Secretary Benjamin Diokno about a potential continuation of intervention to keep the local unit from breaching the 60 levels and an additional rate increase in the Bangko Sentral ng Pilipinas (BSP) key policy rates of about 100 basis points.
He claimed that the international market’s drop also helped the peso in oil prices to a two-week low.
According to Ricafort, the peso would fluctuate on Monday between 58.65 and 58.85 to the dollar.
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