MANILA – Wait-and-see stance for some United States economic data, along with the drop in the US equity gauges, resulted in the negative close of all counters in the local bourse on Thursday but the peso ended sideways.
The Philippine Stock Exchange index (PSEi) shed 0.39 percent, or 25.34 points, to 6,539.36 points.
All Shares followed with a drop of 0.31 percent, or 10.94 points, to 3,484.71 points.
Property posted the biggest decline among the sectoral indices after it fell by 0.67 percent.
It was trailed by Mining and Oil, 0.55 percent; Holding Firms, 0.38 percent; Financials, 0.30 percent; Industrial, 0.27 percent; and Services, 0.16 percent.
Volume reached 626.14 million shares amounting to PHP3.86 billion.
Decliners led advancers at 105 to 69 while 51 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said investors are awaiting the release of jobless claims, wholesale inventories and trade balance, among others.
Oil prices rose “as Saudi Arabia’s plans for deep output cuts more than offset demand woes stemming from rising US fuel stocks and weak Chinese export data.”
Brent crude futures rose by 0.9 percent to USD76.95 per barrel and the West Texas Intermediate (WTI) by 1.1 percent to USD72.53 per barrel.
Despite the negative sentiments in the local equities market during the day, the peso kept its footing against the US dollar and closed the day’s trade at 56.11 from the previous day’s 56.098.
It started the day at 56.12 and traded between 56.21 and 56.08. The average level for the day stood at 56.147.
Volume rose to USD957 million from the previous day’s USD841.55 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s performance on Thursday partly to expectations for a hike in the Federal Reserve’s key rates later this month, the wait-and-see stance for US economic data, and the rise in global crude oil prices.
He said that while the Bangko Sentral ng Pilipinas (BSP) announced a cut in banks’ reserve requirement ratio effective June 30, this was made after the foreign currency trading.
For Friday, the peso is seen to trade between 56.05 and 56.25. (PNA)