Business and Economy
Local stocks recover, peso slides ahead of major data releases
The Philippine Stock Exchange index (PSEi) recovered and gained 0.
63 percent, or 49.60 points, to 7,881.82 points. (Shutterstock photo)
MANILA — The Philippines’ main equity gauge finished Tuesday with gains even as investors await August’s inflation rate report on Wednesday, but the peso lost steam against the US dollar.
The Philippine Stock Exchange index (PSEi) recovered and gained 0.63 percent, or 49.60 points, to 7,881.82 points.
Landbank market economist Guian Angelo S. Dumalagan traced this improvement partly to the positive close of US equity futures, amid challenges around the world.
Some investors also trained their eyes on the recent policy easing move of China, which is expected to boost infrastructure spending and the economy, in general.
Also, the Philippine Statistics Authority (PSA) is scheduled to release the August 2018 inflation report and Dumalagan expects this to hit 6 percent from last July’s multi-year high of 5.7 percent.
“Food items will still be the biggest factor, due to weather disturbances; increasing gasoline prices; and increments in MER (Meralco) rates,” he added.
All the other counters also went up during the day, with the broader All Shares up by 0.50 percent, or 23.69 points, to 4,795.86 points.
Mining and Oil led the sectors with a jump of 1.08 percent while Industrial, Holding Firms, Property, Services, and Financials trailed with increases of 0.91 percent; 0.69 percent; 0.50 percent; 0.42 percent; and 0.14 percent, respectively.
Volume remains thin at 874.6 million amounting to nearly PHP5.94 billion.
Gainers led losers at 101 to 87 while 52 shares were unchanged.
On the other hand, the peso weakened against the greenback after finishing the day at 53.535 from the previous session’s 53.46.
Dumalagan traced this to dollar demand, citing that “September (is) importation month.
”
The Federal Open Market Committee (FOMC) will have a meeting on September 25-26 and it “may raise rates,” he said.
A trader said investors are also observing developments overseas, particularly on the developments in Turkey and Argentina, which are currently experiencing currency crises.
With these factors in the play, the local currency opened the day at 53.5, little moved from the 53.53 a day ago.
It traded between a close range of 53.55 and 53.495, resulting in an average of 53.
53.
Volume reached USD440.75, lower than the USD485.8 million a day ago.
The currency pair is seen to trade between 53.35 and 53.55 Wednesday.
