Trading week begins on a positive note

The local currency ended the week’s first trading day at 52.57 from 52.715 Friday last week. (Shutterstock photo)

MANILA — Hopes for a continued rise in interest rates here and in the US boosted the Philippine peso, while clear indications that inflation pressures have waned backed the Philippine Stock Exchange index (PSEi).

The local currency ended the week’s first trading day at 52.57 from 52.715 Friday last week.

A trader attributed this, partly to the 25 basis points increase in the Bangko Sentral ng Pilipinas’ (BSP) key policy rates last week and expectations for more hikes not just for the BSP but the Federal Reserve.

For the day, the local unit opened at 52.6, sideways from the 52.65 in the previous session.

It traded between 52.65 and 52.55, resulting in an average of 52.6.

The volume of trade totaled to USD561.81 million, lower than the USD756.6 million at the end of last week.

Meanwhile, the main stocks gauge rose 2.64 percent, or 186.92 points, to 7,270.26 points.

Another trader attributed the bullish sentiment to expectations that domestic inflation will start to normalize following the flat rate of 6.7 percent last October.

The rise in the main gauge was mirrored by All Shares, which improved by 1.77 percent, or 76.30 points, to 4,386.82 points.

Most of the sectors tracked the PSEi, led by Holding Firms, which rose 3.73 percent.

It was followed by Services, 2.51 percent; Financials, 2.38 percent; Property, 1.51 percent; and Industrial, 0.29 percent.

Only Mining and Oil ended on the red after it fell 0.20 percent.

Volume reached 1.4 billion shares amounting to PHP8.34 billion.

Gainers led losers at 107 to 81 while 49 shares were unchanged.