WAIT AND SEE. The local equities market's main index rose again on Wednesday (May 17, 2023) ahead of the the policy rate setting meet of the Bangko Sentral ng Pilipinas' (BSP) Monetary Board (MB). On the other hand, the peso weakened against the US dollar. (PNA file photo)
MANILA – The local bourse’s main index gained anew on Wednesday ahead of the policy rate decision of the Bangko Sentral ng Pilipinas (BSP) but the peso depreciated against the US dollar.
The Philippine Stock Exchange index (PSEi) rose by 0.70 percent, or 46.21 points, to 6,635.11 points.
All Shares followed with an increase of 0.41 percent, or 14.48 points, to 3,533.84 points.
Most of the sectoral indices also gained during the day namely Property, 1.32 percent; Services, 1.19 percent; Holding Firms, 0.62 percent; and Financials, 0.10 percent.
On the other hand, Mining and Oil shed by 0.63 percent while Industrial was almost unchanged after it slipped by 0.01 percent.
Volume reached 1.07 billion shares amounting to PHP4.34 billion.
Decliners led advancers at 97 to 93 while 41 shares were unchanged.
“The PSEi continued its rally, breaching the 66,000 as investors await the BSP’s interest rate decision tomorrow,” Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said.
Some analysts expect the central bank’s policy-making Monetary Board (MB) to keep rates steady on hints from monetary officials while others expect a 25 basis points increase following the same hike in the Federal Reserve’s key rates earlier this month.
Limlingan said investors are also on a wait and see stance on the decision by US lawmakers on the debt ceiling for the world’s largest economy this year.
On the other hand, oil prices slipped “as weaker-than-expected economic data in China offset a forecast of higher global demand from the IEA (International Energy Agency).
After rising in recent days, Brent crude oil futures went down to USD74.97 per barrel and the West Texas Intermediate (WTI) to USD70.94 per barrel.
Relatively, the peso weakened against the US dollar after it closed the day at 56.2 from the previous session’s 56.03 finish.
Its weakness showed early on after it opened the day at 56.15 from Tuesday’s 55.97.
It traded between 56.29 and 56.05, resulting to an average of 56.16.
Volume reached USD1.64 billion, higher than the previous day’s USD1.3 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist attributed the peso’s weakness to investors staying at the sidelines ahead of the BSP’s policy meeting.
He said the peso is currently trading lower than than greenback partly on US’ dollar’s correction on hawkish signals from some Fed officials.
For Thursday, the currency pair is seen to trade between 56.10 to 56.30. (PNA)
