MANILA – The local stock barometer sustained its rise on Monday ahead of the release of some economic data from the United States but the peso weakened against the US dollar.
The Philippine Stock Exchange index (PSEi) inched up by 0.76 percent, or 45.23 points, to 6,028.79 points.
All Shares followed with an increase of 0.68 percent, or 21.63 points, to 3,216.67 points.
Majority of the sectoral gauges also gained during the day namely Services, 1.34 percent; Financials, 1.16 percent; Property, 1 percent; Industrial, 0.77 percent; and Holding Firms, 0.15 percent.
Only the Mining and Oil finished the day in the negative territory after it declined by 0.14 percent.
Volume reached 406.76 million shares amounting to PHP3.48 billion.
Advancers led decliners at 91 to 76, while 55 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said among the data releases from the US this week are the manufacturing index, new home sales for September, gross domestic output, durable goods orders, and personal income reading.
He said the US equities ended last week’s trading up “as Wall Street closed a volatile week on a high note despite some disappointing earnings reports.”
“Industry experts believe this came after the market got technically oversold,” he added.
Limlingan said oil prices increased “as hopes of stronger Chinese demand and a weakening greenback outweighed concern about a global economic downturn and the impact of rising rates on fuel use.”
Meanwhile, the local currency ended the week’s first trading day weaker than the greenback at 58.87 from 58.75 last Friday.
It opened the day at a better level of 58.7 from 58.92 Friday last week.
It traded between 58.7 and 58.91, resulting in an average of 58.828.
Volume is lower at USD633 million from USD897.5 million in the previous session.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the local unit closed to among its two-week lows after the correction in US dollar “amid reports that some Federal Reserve officials are concerned about overtightening despite earlier hawkish signal from Fed officials.”
Ricafort said other factors during the day’s foreign currency trading include global market sentiments from the recent improvement in the United Kingdom bonds market, easing of US Treasury yield from its highest in nearly 15 years, and gains in the local bourse’s main index.
He said statements by Finance Secretary Benjamin Diokno about the continued government intervention to help address the peso’s weakness and prevent it from breaching the 60-level against the greenback through the use of the country’s foreign reserves and the expected help from the seasonal inflows of remittances from overseas Filipino workers (OFWs) also factored in during the day’s currency trading.
He added signal from Bangko Sentral ng Pilipinas Governor Felipe Medalla about at least 100 basis points additional rate hikes in the central bank’s key policy rates is expected to help stabilize the local unit.
Ricafort forecasts the peso to trade between 58.70-58.90 to a US dollar on Tuesday. (PNA)