Positive local news lifts equities index, peso

Positive local news lifts equities index, peso

MANILA – Risk-on sentiments reigned in both the local bourse and foreign currency trading on Tuesday, lifting both the main equities index and the peso.

The Philippine Stock Exchange index (PSEi) rose by 1.76 percent, or 113.75 points, to 6,560.06 points.

All Shares increased by 1.39 percent, or 55.55 points, to 4,040.82 points.

The Mining and Oil index led the sectoral counters with a jump of 2.41 percent and was trailed by the Financials, 2.25 percent; Property, 2.05 percent; Holding Firms, 1.55 percent; Industrial, 1.50 percent; and Services, 1.19 percent.

Volume reached 799.86 million shares amounting to PHP4.89 billion.

Gainers led losers at 126 to 57, while 54 shares were unchanged.

Meanwhile, the peso appreciated against the US dollar after closing the day’s trade at 49.61, its strongest since its 49.50 close last July 6, compared to its 49.9 finish a day ago.

It opened the day sideways at 49.9 and traded between 49.98 and 49.61.

The currency pair’s average level for the day stood at 49.845.

Volume totaled USD1.098 billion, higher than the previous session’s USD776.52 million.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the local currency’s strength to the gains in the local stock market brought about by net foreign buying.

Ricafort said the report of the steady unemployment rate for June 2021, at 7.7 percent relative to the previous month, as well as arrival of more vaccines against the coronavirus disease 2019 (Covid-19), also lifted the peso during the day.

Other factors that boosted the peso during the day include Department of Health’s (DOH) decision to allow Metro Manila local government units (LGUs) to vaccinate people who are not included in the priority groups, the above-target collections of the Bureau of Customs (BOC) for July 2021, foreign fund flows amid the ongoing and upcoming fund-raising activities of local companies, and the lower importation activities during the ghost month of August.

Ricafort said the peso’s next minor support level would be between 49.30 to 49.40. (PNA)

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