DOWN. The local main equities index ends the week down on Friday (Oct. 21, 2022) due to negative economic reports from the United States. On the other hand, the peso improved against the greenback on statements on more intervention to support the local currency. (PNA photo)
MANILA – The main stocks index declined anew on Friday due in part to some negative developments overseas but the peso gained against the greenback.
The Philippine Stock Exchange index (PSEi) shed by 1.20 percent, or 72.43 points, to 5,983.56 points.
All Shares followed with a drop of 0.89 percent, or 28.57 points, to 3,195.04 points.
Most of the sectoral gauges also ended the week in the negative territory – Property, 2.43 percent; Services, 2.08 percent; Financials, 1.86 percent; and Holding Firms, 0.15 percent.
On the other hand, Industrial rose by 0.49 percent and Mining and Oil by 0.17 percent.
Volume remained thin at 429.16 million shares amounting to PHP4.51 billion.
Decliners led advancers at 104 to 67, while 48 shares were unchanged.
Luis Limlingan, Regina Capital Development Corp. head of sales, attributed the performance of the indices in the local bourse during the day to the rise in bond yields and wide-ranging corporate earnings.
Citing reports, Limlingan said existing home sales in the United States dropped by 1.5 percent to a seasonally adjusted annualized rate of 4.71 million units in September, higher than expectations.
Oil futures barely moved with Brent oil futures ending at USD92.57 per barrel and the West Texas Intermediate at USD85.71 per barrel.
On the other hand, the local currency finished the week at 58.75 from the previous session’s 58.94 close.
It opened the day flat at 58.92 and traded between 58.97 and 58.68. The average level for the day stood at 58.83.
Volume reached USD897.5 million, higher than the previous day’s USD707.45 million.
Rizal Commercial Banking Corp. chief economist Michael Ricafort traced the peso’s performance partly to signals from Finance Secretary Benjamin Diokno of a possible continued intervention to prevent the local unit from breaching the 60 level and an additional rate hike in the Bangko Sentral ng Pilipinas (BSP) key policy rates of about 100 basis points.
He said a decline in oil prices to its two-week low in the international market also supported the peso.
Ricafort forecast the peso to trade between 58.65 and 58.85 to the dollar on Monday. (PNA)
