EXPECTATIONS. Projections for further deceleration of the US inflation rate last December and possible slower hikes in the Federal Reserve's key rates lifted the local bourse's main index on Thursday (Jan. 12, 2023). However, the peso slipped due to correction after rising to 54-level in the past two days. (PNA graphics)
MANILA – Expectations for further deceleration of the United States inflation rate in December 2022 lifted the local bourse’s main index on Thursday but the peso slipped to the 55-level after rising to 54-level earlier in the week.
After a slip in the past two days, the Philippine Stock Exchange index (PSEi) gained by 1.85 percent, or 124.19 points, to 6,833.53 points.
All Shares followed with a jump of 1.37 percent, or 48.58 points, to 3,588.04 points.
Most of the sectoral gauges also inched up, led by Property after it rose by 3.65 percent.
It was trailed by Financials, 2.18 percent; Holding Firms, 1.52 percent; Industrial, 1.02 percent; and Services, 0.98 percent.
Only the Mining and Oil index finished the day in the negative territory after it declined by 1.13 percent.
Volume reached 1.42 billion shares amounting to PHP7.68 billion.
Advancers led decliners at 115 to 67 while 48 shares were unchanged.
“(The) Philippines rallied on bets that the Fed (Federal Reserve) could slow down its rate hikes in light of tamer prices,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Citing data from Dow Jones, Limlingan said economists expect consumer price index (CPI) in the US to slow by 0.1 percent in December to 6.5 percent annual rise, a turn-around from the 0.1 percent monthly rise last November, which brought the rate to 7.1 percent.
Oil prices also rose in the international market by 3.1 percent to USD82.56 per barrel for the Brent crude and by 3.1 percent to USD77.45 per barrel for the West Texas Intermediate (WTI).
On the other hand, the peso weakened to 55.29 to a greenback from the previous day’s 54.8.
It opened the day 54.95, weaker than its 54.8 start on Wednesday.
It traded between 55.42 and 54.95, resulting in an average of 55.176.
Volume reached USD1.46 billion, higher than the USD1 billion a day ago.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, in a commentary, said the peso posted corrections partly on dovish signals from the Bangko Sentral ng Pilipinas (BSP).
This, after BSP Governor Felipe Medalla said the central bank’s key rates will not likely be hiked by as much as 75 basis points in a single meeting of the policy-making Monetary Board (MB) anymore as inflation is expected to decelerate in the coming months after a possible peak last December.
Ricafort projects the peso to trade between 55.20 to 55.40 to a US dollar on Friday. (PNA)
