AHEAD OF BSP RATE DECISION. The main equities index recovered on Wednesday (Feb. 15, 2023) even with anticipations for the rate decision of the Bangko Sentral ng Pilipinas (BSP) on Thursday and the higher-than-expected rise of US' January 2023 inflation rate. However, the peso slipped against the US dollar and closed the day at the 55-level. (PNA graphics)
MANILA – The local stock barometer recovered on Thursday amid the rise in the United States consumer price index (CPI) for January 2023 while the peso slipped against the US dollar.
After sliding for several days, the Philippine Stock Exchange index (PSEi) rose by 0.45 percent, or 30.85 points, to 6,822.09 points.
All Shares followed with a jump of 0.12 percent, or 4.53 points, to 3,636.18 points.
Most of the sectoral gauges also gained during the day, led by Property after it rose by 1.57 percent.
It was trailed by Financials, 0.75 percent; and Industrial and Holding Firms, which both increased by 0.19 percent.
On the other hand, Services slipped by 1.24 percent and Mining and Oil by 0.76 percent.
Volume reached 1.09 billion shares amounting to PHP5.3 billion.
Decliners surpassed advancers at 113 to 71 while 46 shares were unchanged.
Luis Limlingan, Regina Capital Development Corp. head of sales, said the local bourse managed to increase despite the higher-than-expected inflation in the US in the first month of this year, which rose by 0.5 percent month on month and 6.4 percent year on year.
He said the month-on-month expansion is estimated at 0.4 percent and an annual rise of 6.2 percent.
“This paves the way for a potentially longer path in the Fed’s (Federal Reserve) fight against spiking prices,” he added.
On the local front, Limlingan said investors are on a wait-and-see stance for the rate decision of the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board (MB) on Thursday.
Meanwhile, the peso weakened against the US dollar and capped the day at 55.17 from its 54.83 close a day ago.
It opened the day at 54.95, weaker compared to its 54.67 start in the previous session, and traded between 55.23 and 54.95, resulting in an average of 55.105.
Volume rose to USD1.07 billion from the previous day’s USD848.27 million.
Rizal Commercial Banking Corp. chief economist Michael Ricafort traced the peso’s performance to the higher-than-expected domestic inflation rate last January, the geopolitical tension between the US and China, the correction of the US dollar against major currencies, the unexpected rise in the US’ January 2023 inflation rate, and the hawkish signals from Federal Reserve officials.
He forecast the peso to trade between 55.05 and 55.25 to the greenback on Thursday. (PNA)
