CORRECTION. The main equities index rises on Monday (Nov. 7, 2022) amid the wait-and-see stance for major economic report releases both here and in the United States this week. However, the peso finished the day sideways, which an economist traced to correction. (PNA graphics)
MANILA – The local stock barometer started the week’s trading up ahead of some economic releases from the United States while the peso finished the day sideways against the US dollar.
The Philippine Stock Exchange index (PSEi) gained by 1.78 percent, or 110.05 points, to 6,295.58 points.
All Shares followed with a jump of 1.22 percent, or 39.87 points, to 3,313.57 points.
Most of the sectoral indices also increased during the day –Property, 3.45 percent; Services, 1.78 percent; Holding Firms, 1.32 percent; Industrial, 1.15 percent. and Financials, 0.77 percent.
Only the Mining and Oil index shed after it lost 1.04 percent.
Volume remained thin at 337.75 million shares amounting to PHP4.48 billion.
Advancers led decliners at 117 to 62 while 50 shares were unchanged.
“Investors made bets ahead of a handful of economic data releases this week, including the September figures on merchants’ wholesale inventories (November 9) and the latest CPI (consumer price index) print on November 10,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
The data releases are from the US.
Aside from the economic reports, Limlingan said investors are also on a wait-and-see stance for the “Congressional midterm elections on Tuesday to determine which party will control Congress and impact the direction of future spending.”
“Currently, Democrats control the House and have a majority in the Senate. A Republican sweep could signal greater support for oil and gas companies,” he said.
On the local front, Limlingan said unemployment data is scheduled to be released on Nov. 8 and the third quarter domestic output on Nov. 10.
He said oil prices rose “amid the rate hike uncertainty, while a looming EU ban on Russian oil and the possibility of China easing some Covid-19 restrictions supported markets.”
Limlingan said Brent crude oil futures rose by 4.99 percent to USD98.61 per barrel and the West Texas Intermediate (WTI) by 4.98 percent to USD92.56 per barrel.
Meanwhile, the local currency ended Monday at 58.58 from 58.55 last Friday.
It opened the day at 58.5 and traded between 58.59 and 58.45. The average level for the day stood at 58.501.
Volume reached USD574.2 million, way lower than the previous session’s USD1.11 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s performance to correction but noted that its finish on Monday is among the lowest in more than a month or after ending the trade at 58.5 last Sept. 23.
Ricafort said the peso got a boost from the improvement of the country’s foreign reserves last October to USD94.1 billion, but this was countered by the rise in oil futures in the international market.
He projects the local currency to trade between 58.45 to 58.65 to a US dollar on Tuesday. (PNA)
