MANILA – Profit-taking took over the local bourse’s main index on Tuesday resulting in its slip while the peso ended the day sideways against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 0.45 percent, or 31.44 points, to 7,014.04 points.
All Shares also ended in the red with a drop of 0.47 percent, or 17.23 points, to 3,657.92 points.
Industrial posted the biggest decline among the sectoral gauges after it went down by 1.33 percent.
It was followed by the Holding Firms, 1.03 percent; Financials, 0.73 percent; and Mining and Oil, 0.56 percent.
On the other hand, Property rose by 1.12 percent and Services by 0.22 percent.
Volume reached 1.25 billion shares amounting to PHP10.14 billion.
Decliners led advancers at 111 to 77 while 38 shares were unchanged.
“Investors cashed in after the index touched the 7,000 level yesterday and ahead of the resumptions of trading in the US,” Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said.
There was no trading in the US on Monday due to Martin Luther King Jr. Day.
Limlingan noted that all three of the major indices in the US posted gains in the first two weeks of 2023, with Nasdaq posting the highest with a jump of 5.9 percent “as investors bought beat-up technology shares amid rising hopes of an improving landscape for growth stocks."
In terms of oil prices, Limlingan said it fell “but held close to its highest levels YTD (year-to-date) “on optimism behind China’s reopening.”
Price of Brent crude oil went down by 0.4 percent to USD84.92 per barrel and the West Texas Intermediate (WTI) by 0.3 percent to USD79.65 per barrel.
Meanwhile, the peso ended the day sideways at 54.82 against the US dollar from its 54.575 close a day ago.
It opened the day at 54.6 and traded between 54.93 and 54.55. Average for the day stood at 54.79.
Volume reached USD1.37 billion, higher than the previous session’s USD1.27 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s performance to correction after the local unit’s appreciation in the last two days as well as the PSEi’s slip following its rise to the 7,000-level.
He said developments in the prices of oil in the international market as well as improvement of sentiments vis-à-vis China’s reopening also factored in the foreign exchange market trading.
He forecasts the peso to trade between 54.75-54.95 against the greenback on Wednesday. (PNA)