Business and Economy
Covid-19 vaccine, quarantine easing to boost peso, stocks
FILE: Vehicles passing through EDSA increases on Wednesday (May 6, 2020) but seem to be practicing social distancing under the enhanced community quarantine (ECQ) imposed to contain the coronavirus disease. (PNA photo by Robert Oswald P. Alfiler)
765, its strongest since ending the trade at 48.66 on November 10, 2016.
– Optimism on the possible easing of quarantine measures in the National Capital Region (NCR) and hopes for coronavirus disease 2019 (Covid-19) vaccines are expected to buoy the Philippine peso and the main stocks index next week.
In a reply to e-mailed questions from PNA, Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said confidence on the possible Covid-19 vaccine lifted market sentiment since “”this supports better economic recovery prospects”.
He projects the peso to trade between 48.60 to 49.00 against the greenback next week.
The local currency ended Friday at 48.765, its strongest since ending the trade at 48.66 on November 10, 2016.
On the other hand, the Philippine Stock Exchange index (PSEi) posted a correction and shed 0.34 percent to 6,076.91 points, ending its four-day rally.
“Sentiment on the PSEi and peso also supported by the expected easing of the MECQ (modified enhanced community quarantine) on Metro Manila and nearby areas, even with the remote possibility of MGCQ (modified general community quarantine) as signaled by Malacanang, thereby may also help support economic recovery prospects and investment valuations,” Ricafort said.
The 15-day re-implementation of the modified enhanced community quarantine (MECQ) in NCR, Laguna, Cavite, Rizal and Bulacan will end on August 18.
Ricafort said “progress on Bayanihan 2 Bill with increased support for excluding the proposed 1-year deferment in loan payments” is another plus for market sentiments.
Other factors seen to impact next week’s trading include the trend for new Covid-19 cases, the report on the country’s foreign reserves and overseas Filipino workers (OFWs) remittances, and the Bangko Sentral ng Pilipinas’ (BSP) rate decision.
