Peso posts nearly 2-month high vs. USD, PSEi slips

The local unit gained PHP0.3 after closing at PHP52.85 from PHP53.15 Friday last week. Its closing level at the start of this week is the local currency’s strongest level after the 52.70 finish on June 8, 2018. (Shutterstock photo)

MANILA — The Philippine peso closed at nearly a two-month high against the US dollar on Monday but the Philippine Stock Exchange index (PSEi) slipped again on profit-taking.

The local unit gained PHP0.3 after closing at PHP52.85 from PHP53.15 Friday last week. Its closing level at the start of this week is the local currency’s strongest level after the 52.70 finish on June 8, 2018.

It opened the day at 53.1, better than the 53.15 start in the previous session.

It traded between 53.135 and 52.84, resulting to an average of 53.04.

Volume reached USD892.9 million, higher than the USD595.15 million at the end of last week.

ING Bank Manila Senior Economist Joey Cuyegkeng, in a research note, expects stronger output from emerging market currencies this week following the weaker-than-expected data from the US last week.

One of these economic reports is the July 2018 nonfarm payrolls, which increased by 157,000 but is the lowest rise since last March.

Eagerly being awaited by investors are; government’s July 2018 inflation report on Tuesday, the June 2018 trade data on Wednesday, and second quarter 2018 gross domestic product (GDP) on Thursday. Also due on Thursday is the Monetary Board’s (MB) policy rate decision.

Cuyegkeng said these reports would have implications on the domestic financial markets, citing among others that “sustained upward trend of inflation would likely raise the possibility of a 50 basis points hike at the Thursday meeting (of the MB).”

To date, the peso has weakened by about 6.45 percent against the greenback.

For Tuesday, the local unit is seen to trade between 52.80 and 53.00 to a dollar.

Meanwhile, the Philippine Stock Exchange index (PSEi) shed 0.

03 percent, or 2.08 points, to 7,817.31 points.

It was mirrored by the broader All Shares index, which declined by 0.17 percent, or 7.85 points, to 4,660.44 points.

Most of the sectoral indices, on the other hand, registered increases and was led by the Property with 0.

89 percent. It was followed by the Mining and Oil, 0.

37 percent; Industrial, 0.36 percent; and Financials, 0.34 percent.

Holding Firms and Services, however, declined by 0.

77 percent and 0.14 percent, respectively.

Volume totaled to 2.1 billion shares amounting to PHP5.6 billion.

Losers led gainers at 117 to 92 while 36 shares were unchanged.