MIXED. Anticipations for the release of the January 2024 consumption expenditure data in the US on Thursday help the Philippine Stock Exchange index (PSEi) on Wednesday (Feb. 28, 2024) after rising by 0.23 percent to 6,876.52 points. However, the peso weakened further to 56.25 against the US dollar due partly to the dollar’s correction and concerns on the possible US government shutdown on funding issues. (PNA file photo)
MANILA – A wait-and-see stance for the release of the US’ January 2024 consumption expenditure data allowed the local bourse’s main index to take a breather but the peso weakened anew on Wednesday.
The Philippine Stock Exchange index (PSEi) rose by 0.23 percent to 6,876.52 points and the broader All Shares by 0.24 percent to 3,591.66 points.
Half of the sectoral gauges tracked the main index, namely Financials, 1.25 percent; Property, 0.23 percent; and Holding Firms, 0.08 percent.
On the other hand, the Industrial index slipped by 0.26 percent, and both the Services and Mining and Oil by 0.04 percent.
Volume reached 379.4 million shares amounting to PHP4.73 billion.
Advancers led decliners at 95 to 85, while 57 shares were unchanged.
“Philippine shares made some modest gains as investors braced for the release of the key inflation report due later this week,” Luis Limlingan, Regina Capital Development Corporation (RCDC) managing director, referring to the personal consumption expenditure data, which is the Federal Reserve’s preferred measure of inflation.
Economists expect the latest report to have risen by 0.3 percent in January from 0.2 percent in the previous month.
Earlier this month, the US reported an annual inflation rate of 3.1 percent last January, slower than the previous month’s 3.4 percent rate.
During the day, oil prices in the world market rose on concerns on the continued Israel-Hamas conflict and the production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and other oil-producing countries.
Brent crude futures increased by 1.36 percent to USD83.65 per barrel and the West Texas Intermediate (WTI) by 1.66 percent to USD78.87 per barrel.
On the other hand, the peso slipped to 56.25 from Tuesday’s 56.08 finish against the greenback.
It opened the day at 56.14, sideways from the previous session’s 56.1 start.
It traded between 56.12 and 56.28, resulting in an average of 56.19.
Volume went down to USD1.1 billion from day-ago’s USD1.74 billion.
In a report, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the local currency closed at its weakest in three weeks due to the greenback’s correction, which transpired amid concerns about the possible partial US government shutdown on March 1, 2024 due to financing issues and reduced likeliness of Federal Reserve cuts.
These factors are countered by net foreign buying in the local stocks market and the improvement in global stocks indices, he said.
Ricafort eyes the peso to trade between 56.15 to 56.35 to a US dollar on Thursday. (PNA)
