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Stocks up, peso slips ahead of inflation data

By Joann Villanueva

June 5, 2023, 9:00 pm

<p><em>PNA graphics</em></p>

PNA graphics

MANILA – The Philippine Stock Exchange index (PSEi) rose on Monday but the peso slipped against the United States dollar ahead of the release of domestic inflation rate for May 2023.

The main equities index rose by 0.15 percent, or 9.63 points, to 6,521.64 points.

All Shares followed with a jump of 0.33 percent, or 11.46 points, to 3,486.33 points.

It was a mix among the sectoral gauges but most counters increased namely Industrial, 1.36 percent; Holding Firms, 0.49 percent; Property, 0.30 percent; and Mining and Oil, 0.10 percent.

On the other hand, Services fell by 0.92 percent and Financials by 0.38 percent.

Volume reached 1.73 billion shares amounting to PHP3.38 billion.

Advancers led decliners at 114 to 64 while 37 shares were unchanged.

"Philippine shares started the week slightly above as a fresh batch of economic data could set the tone of the market," said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.

Among the factors that investors are looking at for this week include the release of the domestic inflation report for May 2023, the Philippines' foreign reserves for May, and industrial production.

Limlingan said investors are also at the sidelines ahead of the Federal Reserve's meeting on June 13-14, wherein expectations point to a possible pause in the rate tightening cycle.

On the other hand, the peso is back at 56-level against the US dollar and finished the day's trade at 56.24 after rising to 55.89 last Friday.

It opened the day at 56.01 and traded between 56.25 and 56.00. The average level for the day rose to USD1.08 billion from the USD898.5 million at the end of last week.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso's performance partly to the correction in oil prices in the international market after Saudi Arabia announced that it would cut oil production output by 1 million barrels per day starting in July 2023 to support global crude oil prices.

Ricafort said upward correction of US Treasury yields and anticipation for a pause in the Federal Reserve's rate hiking cycle this month despite forecasts for the resumption of rate hike in July also contributed to the peso's weakness.

For Tuesday, the local currency is seen to trade between 56.15 and 56.35 to a US dollar. (PNA)

 

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