MANILA – The Philippines’ main stocks index sustained its rise and finished the week up, tracking its United States counterparts, a performance mirrored by the peso, which appreciated to the PHP56 level to the greenback.
The Philippine Stock Exchange index (PSEi) gained 0.19 percent, or 12.26 points, to 6,606.00 points.
On the other hand, All Shares ended almost unchanged with a rise of 0.04 percent, or 1.27 points, to 3,506.47 points.
Most of the sectoral indices also gained during the day – Holding Firms, 1.02 percent; Mining and Oil, 0.92 percent; Financials, 0.78 percent; and Services, 0.33 percent.
On the other hand, Property fell by 1.44 percent and Industrial by 0.31 percent.
Volume was thin at almost 787 million shares amounting to PHP4.27 billion.
Advancers led decliners at 97 to 77 while 56 shares were unchanged.
Relatively, the local currency gained against the US dollar after a six-day slide to close the day at PHP56.82 from Thursday’s PHP57.18.
It opened the day at PHP57.05 and traded between PHP57.07 and PHP56.78, averaging PHP56.918.
Volume totaled USD1.15 billion, almost the same as the previous day’s level.
In a report, Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso’s performance to “healthy correction”, citing gains in the local bourse, which he said tracked Wall Street.
Ricafort said it is in line with those of other currencies on the general downward correction of the greenback “amid some measures by some Asian central banks to stabilize their respective local currencies after the recent increase in the US dollar amid hawkish signals from the Fed (Federal Reserve) and the European Central Bank.”
He said the drop in oil prices to the lowest level in the past seven to eight months also contributed to the peso’s strength.
Positive domestic economic reports, such as the drop in the August 2022 unemployment rate to its lowest since the pandemic hit, along with the sustained growth of manufacturing data, also backed the peso.
He said the peso’s next resistance level is between PHP57.25 and PHP57.50 while its immediate support is between PHP56.40 and PHP56.70. (PNA)