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PH stocks index, peso gain on Credit Suisse dev’t

By Joann Villanueva

March 21, 2023, 8:33 pm

<p><strong>GAINS</strong>. Both the local bourse's main index and the peso ended Tuesday (March 21, 2023) up following news that UBS will take-over Credit Suisse. This development calmed the market, economists said, citing that measures are also being implemented in the US to address concerns on possible banking crisis. <em>(PNA graphics)</em></p>

GAINS. Both the local bourse's main index and the peso ended Tuesday (March 21, 2023) up following news that UBS will take-over Credit Suisse. This development calmed the market, economists said, citing that measures are also being implemented in the US to address concerns on possible banking crisis. (PNA graphics)

MANILA – The local stock barometer rebounded on Tuesday as investors took a breather following the Swiss-government engineered take-over by UBS of Credit Suisse, a development which also benefited the local currency.

After starting the week on the negative territory, the Philippine Stock Exchange index (PSEi) rose by 1.24 percent, or 79.73 points, to 6,530.75 points.

All other counters also gained during the day, with the All Shares up by 1.07 percent, or 36.84 points, to 3,493.50 points.

Services registered the highest increase among the sectoral indices at 1.95 percent.

It was followed by Mining and Oil, 1.46 percent; Financials, 1.30 percent; Property, 1.17 percent; Holding Firms, 1.07 percent; and Industrial, 0.72 percent.

Volume reached 545.92 million shares amounting to PHP4.78 billion.

Advancers led decliners at 109 to 69 while 43 shares were unchanged.

“Philippines shares managed to climb above the 6,500 level in the green after a forced takeover of Credit Suisse by UBS, which was engineered by the Swiss government,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.

He said investors also noted reports saying JPMorgan Chase will likely advise US-based First Republic Bank on strategic alternatives.

“Investors now expect a slower pace of tightening from the Fed (Federal Reserve) in light of the banking crisis,” Limlingan said.

He said traders are pricing in around 77 percent changes of a 25 basis points increase in the Federal Reserve rates after the two-day meeting of the Federal Open Market Committee (FOMC) on March 22.

On the local front, Limlingan quoted Finance Secretary Benjamin Diokno as saying that the Bangko Sentral ng Pilipinas (BSP) has options on its key rates --a 25 basis points increase or a pause – given the ongoing global banking developments.

Meanwhile, the local currency gained against the US dollar after ending the day’s trade at 54.44 from 54.675 on Monday.

It opened the day at 54.3, way better than its 54.65 start on Monday.

It traded between 54.48 and 54.26, resulting in an average of 54.353.

Volume reached USD1.08 billion, up from the previous session’s USD861.05 million.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the peso closed it its lowest since last February 10 due partly to the weakening of the US dollar against other major currencies, the decline in global crude prices and gains in the local bourse.

For Wednesday, the local unit is expected to trade between 54.30 to 54.50 against the US dollar. (PNA)

 

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