MANILA – Signs of slowing United States economy resulted in a slip of the local stock barometer on Tuesday but the peso posted an improvement against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 0.40 percent, or 28.18 points, to 7,041.50 points.
All Shares trailed with a drop of 0.13 percent, or 4.77 points, to 3,686.48 points.
Most of the sectoral indices also ended the day in the negative territory, led by Holding Firms after it declined by 0.70 percent.
It was followed by Mining and Oil, 0.62 percent; Financials, 0.41 percent; Property, 0.29 percent; and Services, 0.25 percent.
Only the Industrial index gained during the day after it rose by 0.57 percent.
Volume reached 1.96 billion shares amounting to PHP5.4 billion.
Advancers led decliners at 103 to 89 while 48 shares were unchanged.
“Philippine shares edged lower due to an underwhelming start to US earnings season and more signs that the world’s largest economy is slowing,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
On the local front, Limlingan said investors continue to monitor for any hints regarding the country’s gross domestic product (GDP) for the last quarter of 2022, which the Philippine Statistics Authority (PSA) is scheduled to report on Thursday.
Meanwhile, oil prices registered mix results “as investors cashed in on a jump to a seven-week high on optimism about a possible recovery in demand of top oil importer China as the economy recovers this year from pandemic lockdowns.”
Limlingan said Brent crude oil price went up by 48 cents to USD88.11 per barrel while the West Texas Intermediate (WTI) slipped to USD 81.66 a barrel.
Amidst the negative close of the PSEi, the local currency appreciated against the US dollar and closed the day at 54.435 from 54.54 close a day ago.
It opened the trade at 54.6, weaker than its 54.4 start in the previous session.
It strengthened mid-trade to 54.39 but also weakened to 54.64, bringing the day’s average to 54.521.
Volume reached USD 1.05 billion, lower than the previous day’s USD1.24.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said continued weakening of the US dollar and expectations for lower hikes in the Federal Reserve’s key rates bode well for the local currency.
“Another positive factor for the peso recently: The local stock market gauge still hovered among nine-month highs,” he said.
For Wednesday, the local currency is expected to trade between 54.35 to 54.55 to a US dollar. (PNA)