UP. Reports about revenues gains of US listed firm Meta countered negative sentiments about the lower-than-expected output of the US economy in the first quarter of 2023 and this allowed the local bourse's main index to end the week up. The rise of the PSEi along with the expectations for continued decline in domestic inflation rate benefited the peso, which appreciated against the US dollar on Friday (April 28, 2023). (PNA graphics)
MANILA – Risk-on sentiments lifted both the local bourse’s main index and the peso on Friday, with economists noting that the earnings report by some United States listed firms and recent drop in oil prices countered the lower-than-expected economic growth print in the US.
The Philippine Stock Exchange index (PSEi) gained by 0.63 percent, or 41.40 points, to 6,625.08 points.
All Shares followed with a jump of 0.67 percent, or 23.67 points, to 3,532.53 points.
Half of the sectoral indices tracked the main index, namely Industrial, 1.64 percent; Holding Firms, 1.29 percent; and Property, 1 percent.
On the other hand, Services slipped by 0.91 percent; Financials by 0.46 percent; and Mining and Oil by 0.16 percent.
Volume reached 899.96 million shares amounting to PHP8.34 billion.
Advancers surpassed decliners at 102 to 100 while 43 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said revenue report by US firm Meta for the first quarter of this year, which is up by 3 percent to USD28.10 billion, countered the lower-than-expected output of the US economy in the first three months this year at 1.1 percent on annualized basis.
“Investors appeared to shake off light GDP (gross domestic product) data that could signal the Fed’s rate-hiking campaign may soon come to an end,” he said.
Oil prices in the international market “steadied”, he said, noting reports quoting Russian Deputy Prime Minister Alexander Novak who said that global oil markets are balanced and discounted the need to further reduce production.
Brent crude oil futures ended at USD78.29 per barrel and the West Texas Intermediate (WTI) at USD74.81 per barrel.
Meanwhile, the local currency ended the day better against the US dollar at 55.38 from 55.72 a day ago.
It opened the day at 55.62 and traded between 55.62 and 55.32. The average level for the day stood at 55.497.
Volume rose to USD 1.24 billion from USD1.19 billion the previous day.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s improvement against the greenback to the gains of the PSEi and the recent decline in global oil prices, which he said is expected to benefit domestic prices and domestic inflation rate.
Ricafort said Bangko Sentral ng Pilipinas’ (BSP) April 2023 inflation forecast of 6.3 to 7.1 percent is a plus since the range is lower than the 7.6 percent rate of price increases last March.
For next week, the local currency is seen to trade between 55.10 and 55.60 against the US dollar while the projection for Monday is between 55.30 and 55.50. (PNA)
