DIFFERENT DIRECTIONS. The Philippine Stock Exchange index (PSEi) recovered on Thursday (April 27, 2023) due partly to end-month window dressing. On the other hand, the peso depreciated against the US dollar on the continued concerns on the United States banking sector. (PNA graphics)
MANILA – The local stock barometer recovered on Thursday despite concerns on United States banking sector but the peso weakened against the US dollar.
After ending in the negative territory a day ago, the Philippine Stock Exchange index (PSEi) was boosted by risk-on sentiments and rose by 0.66 percent, or 43.44 points, to 6,583.68 points.
Most of the other counters tracked the main gauge, with All Shares up by 0.48 percent, or 16.60 points, to 3,508.86 points.
Financials led the sectoral indices after it jumped by 2.21 percent and was trailed by Services, 0.97 percent; Industrial, 0.47 percent; Holding Firms, 0.14 percent; and Property, 0.12 percent.
Only the Mining and Oil index finished the day in the red after it slipped by 2.13 percent.
Volume reached 549.17 million shares amounting to PHP4.7 billion.
“Philippine shares started the month-end window dressing early, closing in the green, shrugging off worries around First Republic’s health spurred fears of a broad fallout similar to what happened in the wake of SVB’s (Silicon Valley Bank) collapse,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Oil prices rose “as investors grew optimistic that holiday travel in China would boost fuel demand in the world’s largest oil importer.”
Brent crude futures rose by 1.3 percent to USD82.73 per barrel and the West Texas Intermediate (WTI) by 1.1 percent to USD78.76 per barrel.
Meanwhile, the peso depreciated against the US dollar and closed the trade at 55.72 from 55.62 finish the previous day.
It opened the day at 55.68 and traded between 55.81 and 55.68. The average level for the day stood at 55.742.
Volume declined to USD1.19 billion from Wednesday’s USD1.23 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s correction partly to the narrower foreign portfolio investment net outflows and concerns on the US banking sector.
He said the local currency has depreciated by around 0.1 percent to a US dollar since the start of the year.
For Friday, the local unit is expected to trade between 55.60 to 55.80 against the US dollar. (PNA)
