Local Stocks End Week in Positive Territory, Peso Moves Sideways

Positive sentiments returned to the Philippine equities market Friday enabling the main gauge to finish the week with gains but the peso closed almost unchanged against the US dollar.

The Philippine Stock Exchange index (PSEi) gained 0.16 percent, or 11.74 points, to 7,399.61 points, which a trader said is normal given the ongoing developments in the domestic economy as well as abroad.

Investors are pulling some of their funds from the domestic financial markets given the expectations for sustained rise in US interest rates.

Also, rise of domestic inflation rate is a concern among investors, the trader said, but noted that this issue is seen to be less of a concern on expected return of rate of price increases to within-target levels in 2019.

The improvement in the main index was mirrored by the All Shares after it rose 0.10 percent, or 4.26 points, to 4,466.70 points.

Most of the sectoral counters also finished with gains led by the Property, which increased by 0.96 percent, and was followed by the Mining and Oil and Financials, both of which rose by 0.32 percent, and Industrial, 0.05 percent.

On the other hand, Holding Firms fell by 0.37 percent and Services by 0.21 percent.

Volume of trade reached 568.58 million amounting to PHP3.43 billion.

Gainers led losers at 96 to 93 while 51 shares were unchanged.

The peso ended the week at 53.51 from Thursday’s 53.53, which a trader said is as expected given its fluctuation due to ongoing economic developments.

It opened the day slightly weak at 53.54 from day-ago’s 53.47 as investors digested the recent statement of Federal Reserve Chair Jerome Powell forecasting the US economy’s continued expansion and the possibility of further hikes in the US Fed’s key rates.

The local unit improved to 53.47 during the day but also moved to 53.55, bringing the day’s average to 53.51.

Volume totalled USD474.05 million, up from the previous session’s USD334.7 million.

The trader expected the currency pair to trade between 53.30 and 53.60 next week. (PNA)