Business and Economy
PHP moves down a bit Tuesday on suspected terrorist attack in Russia
MANILA–Investors took on a risk-off attitude Tuesday after a bomb attack in Russia’s St. Petersburg subway killed 11 persons and wounded 45 others Monday, resulting in the sideways finish for the Philippine peso but did not dampen the local equities market.
The Philippine Stock Exchange index (PSEi) gained 1.43 percent, or 104.84 points, to 7,446.49 points, and a trader pointed this to bargain hunting ahead of the earnings season, which is expected to be positive.
All the other counters tracked the main index, with All Shares rising 1.07 percent, or 47.14 points, to 4,460.56 points.
The sectors were led by the Property, which rose 2.43 percent followed by Financials, 1.71 percent; Services, 1.40 percent; Holding Firms, 1.04 percent; Mining and Oil, 0.77 percent; and Industrial, 0.14 percent.
Volume for the day reached 1.95 billion shares amounting to Php 11.94 billion.
Gainers led losers at 114 to 79 while 42 shares did not move.
The local currency finished the day at 50.17 from 50.12 Monday and a trader traced this also to the suspected terrorist attack in a Russian subway.
Other factors during the day’s currency trading were the economic reports scheduled for release this week such as the March 2017 US non-farm payrolls, which is expected to increase by 175,000 from month-ago’s 235,000 jobs.
The US government is also set to release this week the initial joblessness claims while the Philippine government is set to report the March 2017 inflation report Wednesday.
A trader said the outcome of the non-farm payrolls report, particularly the changes in the hourly wages rate, was a major factor that US monetary officials consider vis-à-vis their inflation outlook and eventually the path of the Federal Reserve’s key rates.
Markets still expect about two to three hikes in the Fed rates this year and the trader said probability of a hike in the Fed’s June meeting had risen to about 54.3 percent as of Tuesday
”Depending on how well the reading on Friday is, if non-farm and hourly wages are higher a hike in the inflation rate and Fed rate are possible,” the trader said, adding that this would exert appreciation pressure for the greenback.
The currency pair is seen to trade between 50.10 and 50.30 Wednesday.