MANILA – Earnings reports of some United States listed firms affected investors’ sentiments, resulting in the negative close of the local bourse’s main index which also hurt the peso on Tuesday.
After a two-day rally, the Philippine Stock Exchange index (PSEi) shed 0.63 percent, or 40.9 points, to 6,464.72 points.
Other counters also ended the day in the negative territory, with All Shares down by 0.52 percent or 18.02 points, to 3,471.52 points.
Property led the sectoral counters in terms of losses after it fell by 1.26 percent.
It was trailed by Mining and Oil, 1.22 percent; Holding Firms, 0.84 percent; Industrial, 0.37 percent; Financials, 0.19 percent; and Services, 0.04 percent.
Volume reached 770.44 million shares amounting to PHP3 billion.
Decliners led advancers at 114 to 61, while 55 shares were unchanged.
“Philippine shares closed weaker, as investors parsed through mixed results from State Street and Charles Schwab,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Shares of Boston-based custody bank State Street fell after the financial firm reported a drop in net interest income, deposits and fee revenues in the first quarter of 2023.
The shares of brokerage firm Charles Schwab inched up following the better-than-expected earnings in the first three months of this year.
On the local front, Limlingan said investors are on the wait-and-see stance for the earnings reports of locally listed firms.
For one, Sy-led BDO Unibank Inc. registered a net income of PHP16.5 billion from January to March this year, up from PHP11.7 billion during the same period last year.
Meanwhile, oil prices continued to rise in the international market due in part to West’s energy watchdog International Energy Agency’s (IEA) projection of a rise in global demand given the recovery in Chinese consumption.
Brent crude oil futures increased 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 local currency weakened further against the US dollar and closed the day at 56.14 from the previous day’s 55.85 finish.
It opened the trade at 56.00, weaker than its 55.35 starts a day ago.
It traded between 55.98 and 56.23, resulting in an average of 56.094.
Volume reached USD1.42 billion, higher than the previous session’s USD1.37 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the peso closed to its weakest in more than three months or since Dec. 28, 2022 when it ended the trade at 56.20.
He attributed the peso’s depreciation to the rise in global crude oil prices, correction of the greenback and better-than-expected expansion of the Chinese economy in the first quarter this year, at 4.5 percent, the fastest in a year.
He forecasts the peso to trade between 56.05 to 56.25 to the US dollar on Wednesday. (PNA)