SLIP. The Philippines' main stock index and the peso finish Thursday (Nov. 10, 2022) in the negative territory despite the higher-than-expected rise of the domestic economy in the third quarter of 2022. Economists attributed these developments to investors' wait-and-see stance for the release of the United States October 2022 inflation rate, which is a major consideration for future policy decisions of the Federal Reserve. (PNA graphics)
MANILA – The higher-than-expected growth of the Philippine economy in the third quarter of 2022 at 7.6 percent failed to boost the local bourse’s main index and the peso on Thursday as investors awaited the release of the United States October 2022 inflation report.
The Philippine Stock Exchange index (PSEi) slipped by 1.19 percent, or 74.11 points, to 6,167.57 points.
All Shares followed with a drop of 0.46 percent, or 15.08 points, to 3,277.66 points.
Half of the sectoral gauges also declined during the day, namely Holding Firms, 3.50 percent; Financials, 0.99 percent; and Industrial, 0.60 percent.
On the other hand, Property rose by 1.30 percent, Mining and Oil by 1.16 percent, and Services by 0.33 percent.
Volume remained thin at 455.57 million shares amounting to PHP4.63 billion.
Decliners surpassed advancers at 106 to 66 while 44 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation head of sales, said the PSEi tracked its counterparts in the region despite the surprising rise of the economy’s third quarter gross domestic product, which exceeded expectations.
He said investors are focused on the release of US’ October 2022 inflation report later in the day, which is expected to have decelerated to around 7.9 percent from month-ago’s 8.2 percent.
“It’s a key report for the Fed (Federal Reserve), which will meet again in mid-December,” he added.
Limlingan said there was also lack of clarity around US’ midterm election results and as investors awaited for the latest inflation report.
He said oil prices fell “on the build-up in US crude inventory, coupled with demand concerns over the potential resurgence of Covid-19 cases in China.”
He added the Brent crude oil futures slipped by 1.7 percent to USD93.68 per barrel and the West Texas Intermediate by 1.8 percent to USD87.27 per barrel.
Meanwhile, the local currency weakened to 58.19 to a US dollar after climbing to 57.99 on Wednesday.
It opened the day at 58.08 and traded between 58.25 and 58.00. The average level for the day stood at 58.125.
Volume declined to USD792 million from the previous session’s USD1.11 billion.
Rizal Commercial Banking Corporation chief economist Michael Ricafort traced the peso’s weakness to correction following its rally in the past two days.
He said investors took note of, among others, the developments in US’ midterm elections, which saw Republicans heading for control in the Lower House despite lower-than-forecast margins while race in the Senate continued.
Ricafort forecasts the peso to trade between 58.00-58.30 to a greenback on Wednesday. (PNA)
