Wed, 05 Oct 2022

MANILA - Risk-on sentiments returned to the local bourse and allowed the main index to finish the week up while the peso managed to end the day sideways despite touching the 56-level against the US dollar mid-trade.
The Philippine Stock Exchange index (PSEi) gained 0.57 percent, or 39.23 points, to 6,863.86 points.
It was tracked by all other counters, with All Shares up by 0.44 percent, or 15.80 points, to 3,635.57 points.
Mining and Oil registered the highest increase among the sectoral gauges after it rose by 3.39 percent and was trailed by Property, 1.45 percent; Financials, 0.80 percent; Services, 0.32 percent; Industrial, 0.16 percent; and Holding Firms, 0.10 percent.
Volume reached 1.57 billion shares amounting to PHP5.15 billion.
Advancers led decliners at 113 to 80 while 49 shares were unchanged.
"Philippine shares resumed climbing as investors digested initial jobless claims and home sales data and the latest decision from the BSP (Bangko Sentral ng Pilipinas)," said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
US' Labor Department on Thursday reported that unemployment insurance applications fell by 2,000 to 250,000 in the week ending August 13, the first time in three weeks.
On the other hand, sales for previously owned homes fell by nearly 6 percent last July relative to the previous month, the National Association of Realtors said in its monthly report.
On the local front, the BSP's policy-making Monetary Board (MB) slashed the central bank's key policy rates by 50 basis points on Thursday as authorities continue to see sustained rise of domestic inflation rate until around October or November this year.
The latest rate increase brought to 175 basis points the hike in the BSP's key rates to date.
Meanwhile, the local currency finished the week sideways against the US dollar at 55.93 from 55.88 on Thursday.
It opened the day weaker at 55.98 compared to its 55.85 start in the previous session.
It traded between 55.89 and 56.07, resulting in an average of 55.979.
Volume declined to USD889.67 million from the previous day's USD939.3 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, in a reply to e-mailed questions from the Philippine News Agency, traced the peso's weakness to indications for additional increases in the BSP's key policy rates given the same expectations from the Federal Reserve.
Ricafort said the appreciation of the US dollar recently due to hawkish statements from Fed officials, also hurt the local currency.
However, he said the drop in the prices of oil in the international market partly buoyed the peso.
Ricafort forecasts the peso to trade between 55.80-56.00 against the greenback on Monday while the projection for the whole of next week is for it to trade between 55.60-56.10. (PNA)

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