UP. Both the Philippine Stock Exchange index (PSEi) and the peso gained on Wednesday (July 12, 2023) partly ahead of the release of US' June 2023 consumer price index (CPI) report. The peso also gained against the US dollar due in part to higher remittance inflows from Filipino workers abroad during this enrollment season. (PNA graphics)
MANILA – The local bourse’s main index rose on Wednesday ahead of the release of US’ June 2023 inflation report while the peso gained against the US dollar after climbing to 54-level.
The Philippine Stock Exchange index (PSEi) ended the day’s trade up by 1.07 percent, or 68.21 points, to 6,466.85 points.
All Shares followed with a jump of 0.80 percent, or 27.46 points, to 3,457.33 points.
Most of the sectoral gauges also increased during the day, led by Financials after it inched up by 2.64 percent.
It was trailed by Industrial, 0.90 percent; Property, 0.60 percent; Holding Firms, 0.27 percent; and Services, 0.19 percent.
Only the Mining and Oil index shed during the day after it fell by 0.15 percent.
Volume reached 734.94 million shares amounting to PHP5.25 billion.
Decliners led advancers at 92 to 84 while 49 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said the main equities index rose ahead of the release of US’ June 2023 consumer price index (CPI), which is widely expected to post further annual slowdown from the 4 percent last May.
Limlingan said investors are also waiting for the speech of Federal Reserve Bank of Richmond president Tom Barkin who will talk about inflation at a local chamber of commerce.
Minneapolis Fed president Neel Kashkari is also scheduled to join a panel discussion at the National Bureau of Economic Research (NBER) Summer Institute event that will talk about banking solvency and monetary policy, he said.
Oil prices also rose to USD79.40 per barrel for the Brent crude and to USD74.83 per barrel for the West Texas Intermediate (WTI) due to “heightened demand in emerging counties and supply cuts.”
Meanwhile, the peso improved against the greenback and closed the day at 54.93 from its 55.25 close a day ago.
It started the day at 55.18, way better than its 55.58 opening in the previous session.
It traded between 55.18 and 54.93, resulting in an average of 55.045.
Volume rose to USD1.36 billion from USD1.26 billion the previous day.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the local currency closed to its new three-month low or since closing at 54.40 on April 5, 2023 due in part to the increase in remittance inflows from overseas Filipino workers (OFWs) vis-à-vis the enrolment season for the next school year.
Ricafort said the greenback also weakened ahead of the release of US’ inflation report.
For Thursday, the currency pair is seen to trade between 54.85 and 55.05. (PNA)
