In observance of the Holy Week, the Philippine News Agency’s online news service will be off on March 29, Good Friday, and March 30, Black Saturday. Normal operations will resume on March 31, Easter Sunday.

— The Editors

PH main equities index slips, peso flat vs. greenback

By Joann Villanueva

May 19, 2022, 8:13 pm

<p><strong>3-DAY RALLY</strong>. Inflation worries result in the negative close of the Philippines' main equities index on Thursday (May 19, 2022), ending its three-day rally. However, the peso kept its footing and close the day unchanged against the US dollar. <em>(PNA file photo)</em></p>

3-DAY RALLY. Inflation worries result in the negative close of the Philippines' main equities index on Thursday (May 19, 2022), ending its three-day rally. However, the peso kept its footing and close the day unchanged against the US dollar. (PNA file photo)

MANILA – The Philippines’ main equities index ended its three-day rally on Thursday similar to its counterparts in the US and in the region, which were affected by inflation worries, but the peso ended flat against the US dollar.

The Philippine Stock Exchange index (PSEi) shed 1 percent, or 67.55 points, to 6,660.05 points.

All Shares followed with a decline of 0.62 percent, or 22.28 points, to 3,567.78 points.

Half of the sectoral gauges tracked the main index namely Holding Firms, 1.84 percent; Property, 1.54 percent; and Services, 1.20 percent.

On the other hand, Mining and Oil rose by 1.41 percent; Financials, 0.53 percent; and Industrial, 0.20 percent.

Volume totaled to 1.69 billion shares amounting to PHP8 billion.

Decliners surpassed advancers at 105 to 79 while 36 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said most regional indices registered their biggest drop since 2020.

“The move came after big-box retail earnings indicated inflation was weighing on earnings,” he said.

Citing reports, he said “both Target and Walmart showed higher fuel costs and restrained consumer demand, hurting their 1Q22 results amid the hottest inflation in decades.”

He said the local equities market did not react to the announcement about the 25 basis points increase in the Bangko Sentral ng Pilipinas (BSP) key policy rates, to 2.25 percent for the overnight reverse repurchase (RRP) rate, since it was made right after the market closed.

He said the increase in the BSP rate is the first since the similar jump in November 2018.

“The central bank has maintained a loose and expansionary monetary policy stance for more than a year when it delivered a surprise 25 bp (basis point) cut to provide more traction to economic recovery from the pandemic-induced recession,” he said.

Amid the negative close of the main equities index, the peso finished unchanged against the US dollar at 52.45.

It opened the day at 52.41 and traded between 52.47 and 52.3. Average level for the day stood at 52.39.

Volume rose to USD1.12 billion from the previous day’s USD805.9 million. (PNA)

Comments