UP ANEW. The decline of the United States Treasury bond yields again lifts the local bourse's main index on Wednesday (Oct. 26, 2022). The drop in bond yields resulted in the correction of the US dollar, which benefited the local currency. (PNA graphics)
MANILA – The local bourse’s main index gained anew on Wednesday amidst the drop in United States bond yields while the peso improved against the US dollar.
The Philippine Stock Exchange index (PSEi) rose by 0.79 percent, or 48.12 points, to 6,121.53 points.
All Shares followed with a jump of 0.31 percent, or 10.15 points, to 3,243.27 points.
Majority of the sectoral indices also gained during the day, led by Services after it increased by 1.53 percent.
It was trailed by Holding Firms, 1.35 percent; Industrial, 0.62 percent; and Property, 0.22 percent.
On the other hand, Mining and Oil fell by 5.22 percent and Financials by 0.28 percent.
Volume remained thin at 311.25 million shares amounting to PHP3.72 billion.
Decliners led advancers at 90 to 85, while 51 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said positive earnings reports both of listed firms here and in the US, along with drop in bond yields, lifted the main index.
Limlingan said oil prices rebounded due to weakening of the US dollar and the supply concerns.
He said Brent crude oil futures rose by 0.28 percent to USD92.52 a barrel and the West Texas Intermediate (WTI) by 0.87 percent to USD85.32 a barrel.
Meanwhile, the local currency gained against the US dollar and finished the day’s trade at 58.43 from 58.78 on Tuesday.
Its improvement showed early on after opening the day at 58.65 from the previous session’s 58.87.
It traded between 58.72 and 58.43, resulting in an average of 58.631.
Volume reached USD845.5 million, up from day-ago’s USD561 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the local currency improved ahead of the long holiday weekend “that could entail some increased OFW (overseas Filipino workers) remittances and conversion to pesos to finance some holiday-related travel and other spending.”
He said the greenback also registered a correction due in part to the drop in US Treasury yields and the softer-than-expected US home prices.
Ricafort said results of the Conference Board’s consumer confidence index showed that aggressive Federal Reserve key rate increases are slowing economic activities and could potentially lessen interest rate hike aggressiveness in the coming months.
He forecasts the local unit to trade between 58.25 to 58.55 to a US dollar on Thursday. (PNA)
