SIDEWAYS. Both the Philippine Stock Exchange index (PSEi) and the peso finished trade sideways on Thursday (Feb. 16, 2023) despite the higher-than-expected expansion in US' retail sales last January. Anticipations for further hikes in the Federal Reserve and the Bangko Sentral ng Pilipinas' (BSP) key rates also continued to factor in the daily trading. (PNA graphics)
MANILA – Both the local bourse’s main index and the peso ended Thursday sideways amidst the higher-than-expected January retail sales report in the United States.
The Philippine Stock Exchange index (PSEi) shed by 0.09 percent, or 6.18 points, to 6,815.91 points.
All Shares rose by 0.08 percent, or 2.90 points, to 3,639.08 points.
Half of the sectoral indices ended in the negative territory –Mining and Oil, 1.11 percent; Financials, 0.92 percent; and Services by 0.01 percent.
On the other hand, Property rose by 0.32 percent, Holding Firms by 0.14 percent, and Industrial by 0.05 percent.
Volume reached 1.2 billion shares amounting to PHP12.23 billion.
Decliners surpassed advancers at 102 to 80, while 54 shares were unchanged.
Luis Limlingan, Regina Capital Development Corp. head of sales, said the PSEi closed lower despite the stronger-than-expected 3 percent annual growth of US’ retail sales, surpassing the estimate of around 1.9 percent rise.
“(This) suggested that the Fed (Federal Reserve) may have further to go in its efforts to tame inflation,” he said.
On the other hand, oil futures were almost flat “as the greenback strengthened on worries that rising interest rates would slow the economy and cut fuel demand.”
Brent crude oil price slipped by 0.2 percent to USD85.38 per barrel and the West Texas Intermediate (WTI) by 0.6 percent to USD78.59 per barrel.
Meanwhile, the local currency ended the day at 55.12 to a US dollar from its 55.17 close on Wednesday.
It opened the day at 55.35, weaker than the previous session’s 54.95 start.
It traded between 55.39 and 55.02, resulting in an average of 55.217.
Volume of trade reached USD1.14 billion, up from USD1.07 billion a day ago.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s close to the continued strengthening of the greenback, expectations for more Federal Reserve and Bangko Sentral ng Pilipinas’ (BSP) rate hikes and the geopolitical issues between the US and China, among others.
Ricafort said the peso is trading relatively stronger against the greenback in the last 7.5 months.
This, “would help ease inflationary pressure through lower importation costs/prices and also partly supported the recent gains in the local financial markets, especially the stock market and the bond markets”, he said.
For Friday, the currency pair is expected to trade between 54.35 to 54.55. (PNA)
