INVESTORS’ CONCERNS. The local stock barometer declined on Monday (March 13, 2023) partly on investors' concerns regarding the fallout of Silicon Valley Bank (SVB) in the United States. However, the peso managed to gain against the US dollar due in part to the affirmation by Japan Credit Rating Ltd. (JCR) of its A-level credit rating on the Philippines last week after noting the continued improvement of the country's macroeconomic fundamentals. (PNA graphics)

MANILA – Worries about developments in the United States due partly to the Silicon Valley Bank (SVB) collapse resulted in the negative close of the local bourse’s main index on Monday but the peso gained against the US dollar.

The Philippine Stock Exchange index (PSEi) shed 0.69 percent, or 45.43 points, to 6,544.45 points.

All Shares followed with a drop of 0.61 percent, or 21.56 points, to 3,518.83 points.

Most of the sectoral indices also ended the day in the negative territory namely Financials, 2.04 percent; Services, 2.02 percent; Industrial, 0.74 percent; and Property,0.07 percent.

On the other hand, Holding Firms rose by 0.44 percent and Mining and Oil by 0.007 percent.

Volume reached 913.52 million shares amounting to PHP25.53 billion.

Decliners led advancers at 124 to 58 while 47 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said “Philippines shares slid following the US market’s performance last Friday.”

“Anxiety jumped on Friday and options volume on the index soared to a near four-year high as a growing crisis at SVB Financial,” he said, referring to the beleaguered financial institution in the US.

Other factors for this week’s trading include the February 2023 US consumer price index (CPI) as well as the producers price index (PPI) and retails sales report.

On the local front, among the economic data releases this week are the cash remittances, January 2023 balance of trade and the government’s fiscal report for January 2023.

On the other hand, Brent crude oil futures rose by 1.5 percent to USD82.78 per barrel and the West Texas Intermediate (WTI) by 1.3 percent to USD76.68 per barrel “after the better-than-expected US employment data.”

Meanwhile, the peso gained against the US dollar after closing the day at 54.93 from its 55.17 close last Friday.

It opened the week at 55.05, way better than its 55.17 start in the previous session.

It traded between 55.08 and 54.79, resulting in an average of 54.919.

Volume reached USD1.07 billion, up from the previous session’s USD779.8 million.

In a commentary, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s improvement partly to the decline in US equities, profit-taking in the US dollar and the impact of the SVB failure.

He said these factors are countered partly by the Japan Credit Rating Ltd. (JCR) agency’s decision to affirm its A level investment grade credit rating with stable outlook on the Philippines, after citing the country’s resilient macroeconomic fundamentals.

He forecasts the peso to trade between 54.80-55.00 to a greenback on Tuesday. (PNA)