Peso ends week sideways, local stocks down on trade jitters

By Joann Villanueva

August 24, 2018, 7:04 pm

MANILA -- Investors wait-and-see stance while awaiting Federal Reserve Chairman Jerome Powell's speech at the annual Jackson Hole symposium, resulted in the sideways close of the Philippine peso Friday but the main equities gauge fell on trade concerns.

The local unit ended the week at 53.465 from 53.48 Thursday, which a trader pointed to general weakness of the US dollar on account of the three-day economic symposium, which will end Saturday, being attended by central bank officials and economist around the world.

It opened the day at 53.51, slightly weaker than its 53.46 start in the previous session.

It strengthened to as much as 53.46 but was also pulled to 53.52, resulting to an average of 53.495.

Volume for the day reached USD421.05 million, down from the USD576.45 million a day ago.

The currency pair is seen to trade between 53.30 and 53.60 next week.

On the other hand, the Philippine Stock Exchange index (PSEi) fell by 0.48 percent, or 37.56 points, to 7,766.47 points after a two-day rally

Another trader said lack of resolution after this week’s meeting between US and Chinese officials regarding trade issues added to investors’ worries.

With a deal still to be made, fears of trade impasse still lingers, thus, the weak performance of the equities market during the day, the trader said.

The negative finish of the PSEi for the week was mirrored by the broader All Shares, which declined 0.08 percent, or 3.76 points, to 4,728.82 points.

Most of the sectors trailed, led by the Financials after this dropped by 1.43 percent. It was followed by the Property, 0.94 percent; Services, 0.60 percent; Industrial, 0.44 percent; and Mining and Oil, 0.03 percent.

Only the Holding Firms gained during the day after it went up by 0.21 percent.

Volume reached 2.27 billion shares amounting to PHP7.22 billion.

Losers led gainers at 122 to 76 while 54 stocks were unchanged. (PNA)