STRONGER. Both the main equities index and the peso ended Thursday (April 20, 2023) the shortened trading week with gains amid the release of earnings reports of listed firms both here and in the United States and the path of global oil prices. Markets are closed on Friday (April 21), a regular holiday for the observance of Eid al-Fitr, or the culmination of the Fasting of Ramadan. (PNA graphics)
MANILA – The Philippine Stock Exchange index (PSEi) ended the shortened week up as the earnings reports season continues while the peso gained against the United States dollar.
After a volatile trading during most of this week, the local bourse’s main index gained 1.15 percent, or 74.09 points, to 6,520.44 points.
All Shares followed with a jump of 0.70 percent, or 24.14 points, to 3,488.26 points.
Most of the sectoral indices tracked the main index, led by Financials after it rose by 2.52 percent.
It was trailed by Property, 0.90 percent; Services, 0.71 percent; Holding Firms, 0.69 percent; and Industrial, 0.61 percent.
Mining and Oil was the sole index that ended in the negative territory after it slipped by 1.31 percent.
Volume reached 583.91 million shares amounting to PHP3.82 billion.
Advancers led decliners at 94 to 88, while 41 shares were unchanged.
“The bulls were hailed as the victors in the local bourse as investors digest 1Q23 (first quarter 2023) corporate earnings,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Limlingan said major bourses in the US “traded mix amid releases of earnings reports as well.”
He said traders are also all eyes for the initial jobless claims and existing home sales reports, both of which will be released later in the day.
Oil prices, meanwhile, fell “as the greenback strengthened on fears that rate hikes could curb energy demand in the world’s top consumer.”
Brent crude oil futures slipped by 2 percent to USD83.12 per barrel and the West Texas Intermediate (WTI) by 2.1 percent to USD79.16 per barrel.
Limlingan said gold prices fell below USD2,000 level, with the spot gold price down by 0.45 percent to USD1,995.81, “as US yields marched higher.”
He said the US gold futures went down by 0.55 percent to USD2,008.50.
Meanwhile, the local currency ended the week up against the US dollar at 56.02 from 56.21 close the previous day.
It opened the day at 56.31, weaker than its 56.15 start on Wednesday.
It traded between 56.4 and 56.00, resulting in an average of 56.278.
The volume went down by USD1.08 billion, lower than the previous session’s USD1.24 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s improvement to correction after the drop in global oil prices, softer US dollar gauge against other major currencies and the better balance of payment (BOP) position of the country for March 2023 at USD1.3 billion surplus.
He said the correction of the yield of the US 10-year Treasury to about 3.56 percent also proved a disadvantage for the greenback as it lessened the attractiveness of the securities.
For next week, Ricafort forecasts the peso to trade between 55.70 and 56.20 against the US dollar, while the forecast for Monday is between 55.90 and 56.10.
The stock market will be closed on Friday, a regular holiday for the observance of Eid al-Fitr, or the culmination of the Fasting of Ramadan. (PNA)
