UP. The Philippine Stock Exchange index (PSEi) ended Monday (April 17, 2023) up ahead of the release of some major economic data from the United States. On the other hand, the peso weakened against the US dollar due partly to the rise in global oil prices and the decline in the monthly cash remittances last February. (PNA graphics)
MANILA – The local bourse’s main index closed the week’s first trading up ahead of the release of some economic data from the United States while the peso weakened against the US dollar.
The Philippine Stock Exchange index (PSEi) gained 0.37 percent, or 23.71 points, to 6.505.62 points.
All Shares also rose by 0.25 percent, or 8.77 points, to 3,489.54 points.
Most of the sectoral indices also gained during the day, namely Holding Firms, 0.92 percent; Industrial, 0.73 percent; Property, 0.42 percent; and Services, 0.20 percent.
On the other hand, Financials fell by 0.83 percent and Mining and Oil, 0.36 percent.
Volume reached 1.07 billion shares amounting to PHP4.39 billion shares.
Decliners led advancers at 98 to 82 while 61 shares were unchanged.
“Philippine shares started the shortened trading week in the green with a fresh new batch of economic data likely to dictate market sentiment,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
One of the reports scheduled to be released in the US this week is the Philadelphia Fed manufacturing index while there are several speaking engagements among Federal Reserve officials throughout the week.
The financial markets will close for Eid Al Fitr holiday on Friday.
Oil prices in the international market rose “after the West’s energy watchdog said global demand will hit a record high this year on the back of a recovery in Chinese consumption.”
Brent crude oil future inched up by 0.3 percent to USD86.31 per barrel and the West Texas Intermediate (WTI) by 0.4 percent to USD82.52 per barrel.
Meanwhile, the peso finished the day at 55.85 to a greenback, weaker than its 55.21 close last Friday.
Its weakness showed early on when it opened the day at 55.35 from 55.23 in the previous session.
It traded between 55.87 and 55.35, resulting in an average of 55.589.
Volume reached USD1.37 billion, lower than the USD1.39 billion at the end of last week.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s performance during the day to the slip in the value of monthly cash remittances last February to USD2.569 billion from the previous month’s USD2.76 billion.
Despite this drop in the cash remittance inflows, remittances last February grew by 2.4 percent year-on-year, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed.
Other factors in the foreign exchange trading during the day include the rise in global oil prices, correction of the 10-year US Treasury yield to two-week highs and recent signal from the BSP about a possible pause in its rate hiking cycle if inflation sustains its deceleration.
Ricafort said the peso-US dollar exchange rate is already higher by 0.2 percent compared to the peso’s close of 55.755 in end-2022 and has already erased all of the local unit’s appreciation so far this year.
For Tuesday, he forecasts the peso to trade between 55.75-55.95 against the US dollar. (PNA)
