MANILA – The peso continued to improve against the United States dollar on Friday but risk-off sentiments reigned in the local bourse due to renewed recession fears.
As the US dollar’s 20-year high waned a tad, the local currency continued to regain its footing and finished the week at 58.625 from the previous day’s 58.97.
Its strength showed early on when it opened the trade at 58.6 from 58.87 on Thursday.
It traded between 58.53 and 58.79, resulting in an average of 58.646.
Volume reached USD1.058 billion higher than the previous day’s USD902.86 million.
Meanwhile, the Philippine Stock Exchange index (PSEi) shed 3.26 percent, or 193.18 points, to 5,741.07 points.
All Shares declined by 2.60 percent, or 82.98 points, to 3,107.90 points.
Holding Firms registered the highest drop among the sectoral indices after it fell 4.03 percent.
Property trailed with a decline of 3.57 percent along with Services, 3.35 percent; Industrial, 2.22 percent; Financials, 1.19 percent; and Mining and Oil, 1.13 percent.
Volume reached 1.01 billion shares amounting to PHP6.69 billion.
“Philippine shares hit the 5,700 level as investors weighed concerns over future rate-hiking decisions from the Fed and the impact on the market,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
This, as inflation in the US remained elevated and at its four-decade high level, thus US monetary authorities still hawkish in addressing this issue.
Limlingan said oil prices in the international market fell “as traders awaited clarity on potential OPEC+ cuts next week and as the US dollar eased off 20-year highs.”
Brent crude oil futures slipped to USD88.49 per barrel and the West Texas Intermediate (WTI) to USD81.23 per barrel. (PNA)