Peso keeps strength, PSEi slides

The local currency finished the shortened week’s first trading day at 52.00 from 52.02 last April 6, which a trader said is as expected given the slight weakness of the US Dollar on trade concerns between the world’s two largest economies.

It opened the day at 52.015, better than the 52.15 in the previous session.

It traded between 52.03 and 51.96, with the peso’s strength partly boosted by the strong growth of foreign direct investments (FDI) inflows to the Philippines last January. Average level for the day stood at 51.99.

The Bangko Sentral ng Pilipinas (BSP) during the day reported the 56.7 percent year-on-year rise of FDIs in the first month this year to a net inflow of USD919 million, backed by positive domestic economic fundamentals.

Volume for the day reached USD570.64 million, lower than the USD 645.8 million Friday last week.

The currency pair is seen to trade between 51.90 and 52.10 Wednesday. BSP Governor Nestor A. Espenilla Jr. said the current volatility of the local currency is a “healthy” one.

“We’re not seeing rapid, sudden changes. It’s seems to create a momentum on its own so in that sense that’s one way of looking at it,” he said.

The central bank chief said the local currency continues to be backed by the strong macroeconomic fundamentals. “And based on that metric it seems to be aligned with what is appropriate to maintain the competitive exchange rate. At the end we keep looking at the underlying fundamentals. So because of the strong fundamentals it’s not going one directional,” he added.

On the other hand, PSEi shed anew and lost 0.14 percent, or 10.98 points, to 7,938.68 points. A trader said risk-off sentiment was high during the day due to developments overseas.

All Shares tracked the main index and gave up 0.23 percent, or 11.03 points, to 4,817.47 points.

Half of the sectors also ended the day on the red and these were led by the Services, 1.93 percent, followed by the Mining and Oil, 1.34 percent; and Financials, 0.34 percent.

Meanwhile, Industrial, Holding Firms, and Property rose by 0.56 percent, 0.13 percent, and 0.06 percent, respectively. Volume reached 1.71 billion shares amounting to Php7.6 billion.

Losers led gainers at 137 to 70 while 45 shares were unchanged.