MANILA – The local bourse’s main index recovered on Tuesday after a three-day decline, boosted by positive earnings reports by local listed firms, but the peso weakened against the United States dollar.
The Philippine Stock Exchange index (PSEi) gained 0.84 percent, or 56.84 points, to 6,800.96 points.
All Shares followed with a rise of 0.38 percent, or 13.86 points to 3,621.61 points.
Most of the sectoral gauges also tracked the main index, led by Financials after it rose by 1.57 percent.
It was trailed by Holding Firms, 1.29 percent; Mining and Oil, 1.24 percent; Property, 0.60 percent; and Industrial, 0.12 percent.
Only the Services index ended the day in the negative territory after it declined by 0.97 percent.
Volume reached 611.2 million shares amounting to PHP3.52 billion.
Decliners surpassed advancers at 94 to 79 while 50 shares were unchanged.
“Philippine shares advanced in the afternoon session despite the fall in US market,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Oil prices fell in the international market, with the Brent crude down by 0.1 percent to USD82.91 per barrel and the West Texas Intermediate (WTI) to USD76.40 per barrel.
Meanwhile, the local currency ended the day on a depreciated mode against the US dollar at 55.085 from the previous session’s 54.95 close.
It opened the day at 54.94, way better than its 55.31 start on Monday.
It traded between 55.1 and 54.91, resulting in an average of 55.008.
Volume rose to USD 1.03 billion from day-ago’s USD717.4 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s performance partly to the higher-than-expected 8.7 percent January 2023 domestic inflation rate, more hawkish statements from Federal Reserve officials and the US-China tension, among others.
However, he said these factors are countered by, among others, the highest balance of payment (BOP) surplus of the country in the last two years last January at USD3.081 billion and the drop in global crude oil prices.
For Wednesday, the local unit is expected to trade between 54.95 to 55.15 to a US dollar. (PNA)