MANILA – Positive corporate earnings reports contributed to another rise of the local bourse’s main index on Monday and this also buoyed the local currency, which finished the day sideways against the United States dollar.
The Philippine Stock Exchange index (PSEi) gained by 1.08 percent, or 67.99 points, to 6,354.7 points.
All Shares followed with a jump of 0.71 percent, or 23.70 points, to 3,352.59 points.
Most of the sectoral indices also increased during the day and only the Mining and Oil finished the day in the negative territory after it fell by 0.46 percent.
The gainers were led by the Holding Firms, 1.41 percent; Industrial, 1.25 percent; Property, 1.20 percent; Financials, 0.59 percent; and Services, 0.28 percent.
Volume reached 634.86 million shares amounting to PHP5.65 billion.
Advancers led decliners at 103 to 85 while 39 shares were unchanged.
Aside from the corporate earnings report, Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said the higher-than-expected third-quarter growth report for the domestic economy bolstered sentiments “and encouraged investors to buy into the market.”
Limlingan said investors are also awaiting the release of several major economic reports from the US this week which include the producers price index (PPI), retail sales and building permits.
On the local front, the Bangko Sentral ng Pilipinas (BSP) will have its seventh rate setting meeting for the year this Thursday.
Limlingan cited BSP Governor Felipe Medalla’s earlier statement about another 75 basis points increase in the central bank’s key rates.
He said prices of oil in the international market rose following China’s decision to ease its pandemic-related restrictions.
He added Brent crude oil futures rose by 2.4 percent to USD95.95 a barrel while West Texas Intermediate (WTI) by 2.9 percent to USD88.94 per barrel.
Meanwhile, the local currency ended the day at 57.28, sideways from 57.23 last Friday.
It opened the trade at 57.3 and ranged between 57.39 and 57.22. The average level for the day stood at 57.312.
Volume reached USD720.63 million, lower than the previous session’s USD820.15 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the local currency gained partly on the sustained rise of the PSEi but was affected by, among others, the correction of the US dollar due to the deceleration of US’ inflation rate last October.
Ricafort said that in general, “the peso exchange rate remains relatively stable/stronger for the 8th straight week already, further below the 59.00 record high.”
But he said weakness of the peso in recent months “could still increase the possibility of further local policy rate hike/s.”
For Tuesday, Ricafort forecasts the currency pair to trade between 57.15 to 57.35. (PNA)