MANILA -- The Philippine peso managed to end the week sideways while the local bourse shed amid fears that the truce in the US-China trade war will be cut short following the arrest of a Huawei executive in Canada.
The local currency ended the week at 52.71 from 52.76 Thursday, which the Bank of the Philippine Island (BPI), in its market report, attributed to hawkish statements from a central bank official.
"BSP Deputy Governor (Diwa) Guinigundo said that it is difficult to say if the tightening cycle of the central bank is over,” it said.
Inflation last November slid to 6 percent from nearly 10-year high of 6.7 percent last September-October. Authorities attributed this partly to measures implemented starting last September, which include boosting of rice supply after the National Food Authority (NFA) was directed to release its rice stocks in all its warehouses nationwide.
The peso opened the day little changed at 52.689 from 52.7 a day ago. It traded between 52.73 and 52.6, resulting to an average of 52.656. Volume reached USD973.95 million, lower than the USD993.25 million a day ago. The currency pair is seen to trade between 52.60 and 52.90 next week.
On the other hand, the main equities gauge gave up 0.99 percent or 74.26 points, to 7,461.06 points. Regina Capital Managing Director Luis Limlingan attributed the drop to investors' fears that the 90-day truce agreed upon by leaders of the two economic giants will but abruptly cut.
This, after the US government called for the extradition of Huawei Technologies Co. chief financial officer Wanzhou Meng, who was arrested in Canada. The arrest was reportedly made on the request of US authorities, who accused the Chinese company of violating sanctions against Iran. Investors everywhere have thus, taken a wait-and-see stance.
Concerns on the possible global economic slowdown added to uncertainties, Limlingan said.
All Shares followed the main gauge and ended the week at 4,495.88 points, down 0.77 percent or 35.04 points. Holding Firms posted the highest drop at 2.06 percent and was trailed by the Mining and Oil, 1.68 percent; Services, 0.84 percent; Property, 0.71 percent; and Industrial, 0.009 percent. Only the Financials counter ended with gains after it rose 0.27 percent.
Volume reached 2.32 billion stocks amounting to PHP6.29 billion. Decliners led advancers at 110 to 80 while 42 shares were unchanged. (PNA)
