DOWN. The Philippine Stock Exchange index (PSEi) ended the week's first trading day down Monday (May 15, 2023) as investors’ worries on the path of the United States economy resurfaced. The peso depreciated against the US dollar partly ahead of the rate setting meeting of the Bangko Sentral ng Pilipinas (BSP) on Thursday. (PNA graphics)
MANILA — Risk off sentiments resulted in the negative close of the local bourse’s main index and the depreciation of the peso against the United States dollar at the start of this week.
The Philippine Stock Exchange index (PSEi) on Monday slipped by 0.84 percent, or 55 points, to 6,523.15 points.
All Shares declined by 0.57 percent, or 19.85 points, to 3,491.10 points.
Most of the sectoral indices also ended in the negative territory, led by Property after it contracted by 1.17 percent.
It was followed by Services, 1.01 percent; Holding Firms, 0.75 percent; Industrial, 0.66 percent; and Financials, 0.51 percent.
Only the Mining and Oil index gained during the day after it rose by 0.45 percent.
Volume reached 1.65 billion shares amounting to PHP4.14 billion.
Decliners led advancers at 106 to 86 while 42 shares were unchanged.
“Philippine shares plunged steeply as concerns around (the) US economy resurfaced and dampened investors’ sentiment,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Among the drivers for this week’s trading include the April 2023 US retail sales figures and the rate decision of the Bangko Sentral ng Pilipinas (BSP).
Oil prices slipped, with Brent crude down by 1.1 percent to USD74.17 per barrel and West Texas Intermediate (WTI) by 1.2 percent to USD70.04 per barrel, “on supply fears against renewed economic concerns.”
Meanwhile, the local currency weakened to 56.07 against the US dollar from its 55.79 close last Friday.
It opened the day at 55.95 and traded between 55.9 and 56.09. The average level for the day stood at 55.971.
Volume went down to USD1.28 billion from the previous session’s USD1.49 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s weakness partly to possible pause in the Bangko Sentral ng Pilipinas’ (BSP) key rate hiking moves and the cut in bank’s reserve requirement ratio if inflation rate sustains its deceleration.
He said reports about the government’s deferment of its planned US dollar retail bond also figured during the day’s foreign currency trading.
For Tuesday, he forecasts the peso to trade between 55.95 and 56.15 against the US dollar. (PNA)
