BETTER. The Philippine Stock Exchange index (PSEi) recovered on Friday (Dec. 9. 2022) ahead of the release of the US Producer Price Index for November 2022, which an analyst said is a major factor for the Federal Reserve's rate decision this month. The peso also finished the week sideways due to the seasonal influx of remittances for the Christmas holiday and the recovery of the local bourse's main index. (PNA file photo)

MANILA -- The Philippine Stock Exchange index (PSEi) recovered on Friday ahead of the release of the US Producer Price Index (PPI) for November and this optimism benefited the peso.

The Philippine Stock Exchange index (PSEi) gained 0.84 percent, or 54.96 points, to 6,580.12 points.

All Shares followed with a jump of 0.34 percent, or 11.54 points, to 3,437.40 points.

Most of the sectoral indices also gained during the day – Services, 2.63 percent; Holding Firms, 1.27 percent; Mining and Oil, 0.63 percent; and Property, 0.10 percent.

Industrial and Financials, on the other hand, slipped by 0.46 percent and 0.21 percent, respectively.

Volume was thin at 516.99 million shares amounting to PHP6.1 billion.

Advancers led decliners at 92 to 84 while 47 shares were unchanged.

“Philippine shares closed higher as investors shifted their attention to new inflation data,” Luis Limlingan, Regina Capital Development Corp. head of sales, said, referring to the release of the US PPP later in the day.

He said the latest PPI report “will give further information about how the Fed’s (Federal Reserve) interest rate hikes will tame high inflation.”

Oil prices further slipped “on the idea of a major crude pipeline that shut after a leak (and) resuming service would return a hefty amount of crude to the market at a time when global economic slowdown (is) raising fuel demand fears.”

Brent crude oil futures fell by 0.7 percent to USD76.67 per barrel and the West Texas Intermediate by 0.2 percent to USD71.85 per barrel.

Relatively, the peso ended sideways against the US dollar at 55.37 from 55.45 on Thursday.

It opened the day at PHP55.27 from PHP55.85 to the dollar a day ago, trading between PHP 55.39 and PHP 55.17, and averaging at PHP 55.27.

Volume reached USD944 million, lower than the previous session’s USD1.16 billion.

Rizal Commercial Banking Corp. chief economist Michael Ricafort traced the continued improvement of the local currency to the seasonal increase in remittances during the Christmas holiday, the drop in global crude oil prices, the recovery of the PSEi, and the weakening of the US dollar.

He said sentiments were also supported by optimism about China’s decision to reopen its economy and ease pandemic-related restrictions.

He said the local currency has improved by 2.1 percent since the start of this month alone.

This is a big improvement after the local unit registered its record-high close several times in October at PHP59 to the dollar.

For next week, Ricafort eyes the peso to trade between PHP55 and PHP 55.60 against the dollar, with the range for Monday eyed between PHP55.25 and PHP55.45. (PNA)