THE PESO sustained its rise against the US dollar on Monday, December 1, but the Philippine Stock Exchange index (PSEi) ended the week’s first trading day in the negative territory on profit-taking from its recent rally.
The local currency finished the day’s trade at 58.49 from its 58.64 close on November 28, the fourth consecutive day of appreciation.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort traced the peso’s strengthening to several factors, such as the recent affirmation by S&P Global of its investment grade rating on the country, the expected seasonal rise of remittances from overseas Filipino workers, and expectations for 25 basis points reduction in the US Federal Reserve key rates.
With these factors, the peso opened stronger for the day at 58.63 from 58.73 start in the previous session.
Its strength showed early on when it opened the trade at 58.63 from 58.73 start in the previous session.
It traded between 58.49 and 58.68, bringing the day’s average to 58.59.
Volume declined to USD1.22 billion from the USD1.27 billion at the end of last week.
On the other hand, the local bourse’s main index shed 0.55 percent to 5,989.29 points and the broader All Shares by 0.69 percent to 3,543.78 points.
Most of the sectoral gauges also ended in the red, namely Holding Firms, 1.88 percent; Property, 0.74 percent; Financials, 0.28 percent; and Industrial, 0.02 percent.
The Mining and Oil index, meanwhile, rose by 2.47 percent and Services by 0.58 percent.
Volume reached 1.14 billion shares, amounting to P6.48 billion.
Advancers led decliners at 99 to 97, while 65 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation head of sales, attributed the PSEi’s decline partly to investors’ decision to lock in profits before the release of some economic reports on Friday.
“This decline came despite expectations of softer November inflation, supported by continued rice price deflation, which may give the BSP (Bangko Sentral ng Pilipinas) additional room to consider another rate cut,” he said. (PNA)
