MANILA – The peso again ended the trade to its over four-year high against the US dollar but the main stocks index slipped for the fourth consecutive day partly due to Morgan Stanley Capital International (MCSI) rebalancing.
The local currency finished the trade at 48.06, its strongest since it closed at 47.99 on Sept. 23, 2016. It finished Thursday at 48.115.
It opened the day at 48.13, sideways compared to its 48.11 start in the previous session.
It traded between 48.13 and 48.055, resulting in an average of 48.085.
Volume totaled to USD783.4 million, higher than the previous day’s USD575.71 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s strength to the sustained rise of the country’s balance of payment (BOP) position, which posted its record-high USD10.31 billion as of end-October 2020, and the record-high gross international reserves (GIR) of USD103.8 billion during the same period.
“(The) peso (is) also stronger as December draws nearer when there is a seasonal increase in OFW (overseas Filipino workers) remittances and conversion to pesos for Christmas spending,” he said.
Ricafort said approval by the Senate for the third and final reading of the proposed Corporate Recovery and Tax Incentives for Enterprises (CREATE) Bill Thursday also fueled the peso’s strength.
He forecasts the peso to trade between 47.90-48.15 next week, with the Tuesday projection seen to range between 48.00-48.10.
Meanwhile, the Philippine Stock Exchange index (PSEi) shed by 1.97 percent, or 136.29 points, to 6,791.46 points.
All Shares also declined after ending the day at 4,100.28 points, down 0.91 percent or 37.81 points.
Most of the sectoral gauges also finished the day on the red, led by the Holding Firms, which fell by 2.90 percent.
Financials dropped by 2 percent, Industrial by 1.24 percent, and Property by 0.42 percent.
On the other hand, Mining and Oil gained by 1.86 percent and Services by 0.23 percent.
Volume totaled by 4.52 billion shares amounting to PHP27.65 billion.
Gainers led losers at 129 to 75, while 50 shares were unchanged.
“Local shares fell below the 6,800 mark as investors re-aligned with the latest MSCI rebalancing which takes effect at the end of the month,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.
He also attributed the continued negative close of the main equities gauge to the Thanksgiving holiday in the US that made some investors take profit. (PNA)
