MIXED ANEW. The Philippines’ main equities index rose anew on Tuesday (May 9, 2023) ahead of the release of the first-quarter gross domestic product data later in the week. However, the peso weakened against the US dollar after the upward correction of the greenback's gauge against other major currencies. (PNA graphics)
MANILA – The local bourse’s main index sustained its rally on Tuesday ahead of the release of the first-quarter gross domestic product (GDP) data later in the week but the peso depreciated against the US dollar.
The Philippine Stock Exchange index (PSEi) increased by 0.33 percent, or 21.87 points, to 6,622.61 points.
All Shares followed with a jump of 0.19 percent, or 6.69 points, to 3,532.33 points.
Most of the sectoral indices were in the positive territory with the Property index rising by 0.87 percent; Holding Firms, 0.74 percent; Mining and Oil, 0.54 percent; and Industrial, 0.05 percent.
On the other hand, Services declined by 0.66 percent and Financials by 0.30 percent.
Volume reached 325.79 million shares amounting to PHP4.2 billion.
Decliners surpassed advancers at 86 to 73 while 71 shares were unchanged.
“Philippine shares continued to consolidate, this time with an upward bias as investors continued to make bets ahead of the release of (the) Philippines’ 1Q 23 (first quarter 2023) GDP release on May 11,” said Luis Limlingan, Regina Capital Development Corp. (RCDC) head of sales.
Limlingan said the consensus forecast is an expansion of 6.2 percent, while RCDC eyes it to be about 6.5 percent.
The domestic economy grew by 7.2 percent in the last quarter of 2022, slower than the previous quarter’s 7.6 percent and 7.8 percent last year, which authorities traced partly to the economic impact of an elevated inflation rate.
Despite this, full-year growth averaged 7.6 percent, exceeding the government’s 6.5 percent to 7.5 percent target.
Oil prices rose in the international market “as US recession fears eased and some traders saw crude’s three-week slide on demand worries as overdone.”
Brent crude oil futures inched up by 2.19 percent to USD76.95 per barrel and the West Texas Intermediate (WTI) by 2.5 percent to USD73.12 per barrel.
Gains in the local bourse were, however, not mirrored in the foreign exchange market after the local currency weakened to 55.76 against the greenback from its 55.25 close on Monday.
It opened the day sideways at 55.45, and traded between 55.78 and 55.4, averaging 55.55.
Volume rose to USD1.66 billion from the previous session’s USD989.15 million.
Rizal Commercial Banking Corp. chief economist Michael Ricafort traced the peso’s weakness to the government report on the wider trade deficit in March at 7.5 percent against the previous month’s annual decline of 2.7 percent.
He said the gauge of the US dollar against other major currencies also corrected partly on expectations of a cut in the Federal Reserve’s key rates in the coming months.
For Wednesday, the currency pair is expected to trade between 55.65 and 55.85. (PNA)
