MANILA - Passage of the Fiscal Responsibility Act in the US lifted sentiments in the local bourse and resulted to the positive close of all the counters as well as the strengthening of the peso to 55-level.
The Philippine Stock Exchange index (PSEi) rose by 1.27 percent, or 81.43 points, to 6,512.01 points.
All Shares followed with a jump of 0.90 percent, or 31.02 points, to 3,474.87 points.
Holding Firms led the sectoral counters after it rose by 1.59 percent and was trailed by Services, 1.46 percent; Financials, 1.30 percent; Property, 0.72 percent; Industrial, 0.63 percent; and Mining and Oil, 0.42 percent.
Volume reached 1.21 billion shares amounting to PHP4.88 billion.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, attributed the recovery in the local bourse to easing of the US' debt ceiling concerns.
He said eyes are now on the jobs report, noting that US labor market remains strong despite the hikes in the Federal Reserve’s key rates.
Meanwhile, global oil prices reversed its path and increased ahead of the meeting of the Organization of the Petroleum Exporting Countries Plus (OPEC+), which includes the 13 OPEC members and 10 of the major non-OPEC oil importing countries in the world on Sunday.
Brent crude futures is up by 2.3 percent to USD74.65 per barrel and the West Texas Intermediate (WTI) by 3 percent to USD70.10 per barrel.
Gains in the local bourse were mirrored by the peso after it appreciated against the US dollar and ended Friday at 55.89 from the previous session’s 56.26.
It opened the day at 56.1, better than its 56.23 start in the previous day.
It traded between 55.89 and 56.1, bringing the day's average to 55.961.
Volume went down to USD898.5 million from day-ago's USD990.35 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said approval by US lawmakers of the measure to suspend the debt ceiling to prevent a default helped improve investors sentiment.
He said start of the Philippines' membership to the world's largest free-trade agreement, the Regional Comprehensive Economic Partnership (RCEP), effective on Friday (June 2, 2023), along with the decline in the price of liquified petroleum gas (LPG) also contributed to the peso’s appreciation.
For next week, he forecasts the peso to trade between 55.60-56.10 to a greenback while the projection for Monday is between 55.80-56.00. (PNA)