MIXED. After starting the week up, the local equity market's main gauge ended flat on Tuesday (April 25, 2023) as investors await more economic reports from the United States. On the other hand, the peso gained against the US dollar due to the recent decline in global crude oil prices and its impact on domestic prices and inflation. (PNA graphics)
MANILA – The local bourse’s main index ended flat on Tuesday as investors await some economic reports from the United States while the peso gained against the US dollar.
The Philippine Stock Exchange index (PSEi) lost 0.08 percent, or 4.99 points, to 6,593.39 points.
All Shares slipped by 0.09 percent, or 3.3 points, to 3,506.79 points.
Most of the sectoral indices gained -- Mining and Oil was up by 0.68 percent; Industrial, 0.29 percent; and Financials and Holding Firms, both by 0.15 percent.
Property went down by 0.62 percent and Services by 0.33 percent.
Volume reached 741.13 million shares amounting to PHP5.23 billion.
Decliners led advancers at 106 to 79, while 52 shares were unchanged.
“Philippine shares closed flat as investors await earnings releases from tech names and consumer discretionary firms, as well as a slew of economic data,” said Luis Limlingan, Regina Capital Development Corp. head of sales.
Among the reports scheduled for release in the US this week are the new home sales for March 2023 and the S&P/Case-Shilller 20-city home price index for February 2023.
Oil prices in the international market rose “as investors grew optimistic that holiday travel in China would boost fuel demand in the world’s largest oil importer.”
Brent crude futures increased by 1.3 percent to USD82.73 per barrel and the West Texas Intermediate (WTI) by 1.1 percent to USD78.76 per barrel.
Meanwhile, the local currency appreciated against the greenback, ending the day at 55.54, slightly stronger than its close of 55.77 in the previous session.
Its strength showed early after opening the day’s trade at 55.65, compared to its 55.95 start on Monday.
It traded between 55.65 and 55.43, resulting in an average of 55.567.
Volume inched up to USD1.27 billion from the previous session’s USD1.21 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso registered a correction for the third straight day due partly to the recent drop in oil prices to three-week lows, its expected impact on domestic fuel prices and inflation, and the enhancement in the Bangko Sentral ng Pilipinas’ (BSP) dollar hedging facility.
Ricafort said the peso-dollar rates have corrected by about 2.2 percent since the start of April.
For Wednesday, the local currency is expected to trade between 55.40 and 55.60 to the US dollar. (PNA)
