DOWN ANEW. Anticipations for additional hikes in the Federal Reserve's key rates resulted in another decline of the Philippines main stock index on Monday (Oct. 10, 2022). The peso again weakened to its record-low of 59.00 to a greenback. (PNA graphics)
MANILA – All counters in the local bourse ended Monday in the negative territory while the peso again ended to its record-low close against the United States dollar of 59.00 on expectations for additional hikes in the Federal Reserve’s key rates.
The Philippine Stock Exchange index (PSEi) shed by 1.68 percent, or 99.61 points, to 5,832.58 points.
All Shares followed with a decline of 1.61 percent, or 51.49 points, to 3,149.10 points.
Holding Firms registered the biggest drop at 2 percent and was trailed by Mining and Oil, 1.89 percent; Industrial, 1.79 percent; Services, 1.75 percent; Property, 1.39 percent; and Financials, 1.08 percent.
Volume was thin at 325.66 million shares amounting to PHP2.53 billion.
Decliners led advancers at 158 to 36, while 37 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, attributed the local bourse’s performance during the day partly to the shortened trading week in the US given the Federal holiday on Monday.
“Sentiment was also dragged by the performance before the weekend —U.S. equities fell on Friday as traders evaluated September jobs report, which showed the unemployment rate continuing to decline and sparked an increase in interest rate,” he said.
Also, oil prices climbed anew following the production cut decision by Organization of the Petroleum Exporting Countries (OPEC).
Futures of Brent crude oil rose by 3.7 percent to USD97. 90 per barrel and the West Texas Intermediate (WTI) by 4.7 percent to USD92.63 per barrel.
Meanwhile, the local currency again closed to its record-low of 59 hit last Oct. 3 to a US dollar from 58.92 Friday, a sideways movement.
It opened the day at 58.98, weaker than its 58.85 start in the previous session.
It traded between 59.98 and 58.95, resulting in an average of 58.999.
Volume was thin at USD402 million from USD483.35 million at the end of last week.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort partly attributed the peso’s weakness to the drop to two-year low of the country’s gross international reserves (GIR) to USD95 billion.
He said the rise of oil futures and contraction of the PSEi for the third consecutive day also contributed to the peso’s depreciation due largely to expectations for more hikes in the Federal Reserve funds rate.
For Tuesday, Ricafort expects the peso to trade between 58.95-59.00 to a US dollar. (PNA)
