MIXED. Sentiments in the local bourse are mixed on Tuesday (Sept. 13, 2022), resulting in the main index's decline ahead of the release of US' August 2022 inflation report later in the day. However, the peso gained against the US dollar. (PNA graphics)
MANILA – The local stock barometer ended its rally on Tuesday ahead of the release of the United States August consumer price index (CPI) report but the peso strengthened against the greenback.
After a two-day rally, the Philippine Stock Exchange index (PSEi) declined by 0.21 percent, or 13.94 points, to 6,701.81 points.
All Shares slipped by 0.08 percent, or 2.99 points, to 3,542.83 points.
Majority of the sectoral counters also ended the day in the negative territory –Property, 0.70 percent; Industrial, 0.68 percent; Mining and Oil, 0.31 percent; and Services, 0.24 percent.
On the other hand, Financials rose by 0.47 percent and Holding Firms by 0.05 percent.
Volume was thin at 706.04 million shares amounting to PHP5.52 billion.
Decliners led advancers at 107 to 71, while 44 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, traced the main index’s drop to a wait-and-see stance for the release of US’ August 2022 CPI data later in the day.
“Street view is for the cost of goods to drop to 8 percent from 8.5 percent the previous month as there is widespread belief that this has already peaked,” he said.
Limlingan said recent US dollar weakness and Ukraine’s reported success in recapturing some of its territories that have been occupied by Russia “may also support stocks the rest of the week.”
He said another factor in the day’s equities trading is the rise of oil prices in the international market “as Iranian nuclear talks appeared to hit obstacles and an embargo on Russian oil shipments loomed, with tight supply struggling to meet still robust demand.”
Limlingan added Brent crude oil price is up by 1.25 percent to USD94 per barrel and the West Texas Intermediate (WTI) inched up by 1.1 percent to USD87.78 per barrel.
Meanwhile, the peso gained a bit of ground from the US dollar at 56.77 from Monday’s 56.86.
It opened the day at 56.8 and traded between 56.95 and 56.73. The average for the day stood at 56.857.
Volume reached USD934.45 million, higher than the previous session’s USD897.2 million. (PNA)
