GAINS. Better-than-expected producer price index (PPI) in the United States for March 2023 lifted investors' sentiment and put a stop on the local equities index' main gauge's decline on Friday (April 14, 2023). The peso also finished the week sideways against the US dollar amidst the correction of the US dollar versus other major currencies. (PNA graphics)
MANILA – The main equities gauge ended Friday with gains after slipping in most of the week while the peso closed sideways against the greenback partly on positive inflation report from the United States.
The Philippine Stock Exchange index (PSEi) rose by 0.51 percent, or 33.04 points, to 6,481.91 points.
All Shares followed with a jump of 0.41 percent, or 14.25 points, to 3,480.77 points.
Most of the sectoral indices also ended with gains, led by Mining and Oil after it rose by 2.25 percent.
It was followed by Property, 1.62 percent; Holding Firms, 0.40 percent; Industrial, 0.29 percent; and Services, 0.14 percent.
Only the Financials index ended the week down after slipping by 0.06 percent.
Volume reached 981.38 million shares amounting to PHP4.62 billion.
Advancers led decliners at 99 to 81 while 46 shares were unchanged.
“Philippine shares settled in the green as investors cheered the latest data showing the pace of inflation was slowing,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
He is referring to the March producer price index (PPI) data from the US, which unexpectedly fell by 0.5 percent in the third month this year due partly to the drop in gasoline prices.
The oil prices in the international market reversed its climb “weighed by fears of a looming recession in the United States and warnings from the OPEC (Organization of the Petroleum Exporting Countries) group about hits to summer oil demand.”
Brent crude futures also slipped by 1.42 percent to USD86.09 per barrel and the West Texas Intermediate (WTI) by 1.32 percent to USD82.16 per barrel.
Meanwhile, the local unit ended the week sideways against the US dollar after finishing at 55.21 from 55.26 on Thursday.
It started the day at 55.22 and traded between 55.27 and 55.06. The average level for the day stood at 55.153.
Volume increased to USD1.39 billion from the previous session’s USD1.2 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the exchange rate posted a correction due to the easing of the US dollar to new 2.5-month lows following the softer jobless claims and producer prices “that could reduce the need for more Fed (Federal Reserve) rate hikes and could support a possible Fed rate pause in the coming months.”
Ricafort said the peso corrected higher for the third straight week to date at around 1.5 percent “after the end of seasonal increase in OFW (overseas Filipino workers) remittances and conversion to pesos during the long Holy Week holiday weekend to finance holiday-related spending.”
For next week, the currency pair is expected to trade between 54.90 to 55.40, while the forecast range for Monday is between 55.10 to 55.30. (PNA)
