PSEi recovers as global headwinds weaken; peso dips

MANILA – The Philippine Stock Exchange index (PSEi) managed a late-week recovery despite a weakening peso, as global crude oil prices ease and a cool-off in U.S. Treasury yields gave local equity investors a brief respite.

The local bourse’s main index rose 1.61 percent to 5,700.99 points, while the broader All Shares index gained 1.47 percent to 3,191.85 points.

In a market report, Rizal Commercial Banking Corporation chief economist Michael Ricafort traced the stock market's recovery partly to a drop in global crude oil prices, a downward correction in U.S. Treasury yields from a 24-year high earlier in the week, and a statement from President Donald Trump that the United States would not attack Iran ahead of the Nov. 3 midterm elections.

All sectoral gauges also ended the week in positive territory, led by the Mining and Oil index, which advanced by 2.80 percent.

It was followed by Services, up 2.36 percent; Industrial, by 2.33 percent; Financials, by 1.50 percent; Property, by 0.79 percent; and Holding Firms, by 0.61 percent.

Trading volume remained thin, with 630.34 million shares changing hands, valued at PHP7.8 billion. Market breadth was positive as advancers beat decliners, 120 to 57, while 62 issues closed unchanged.

Despite the stock market rally, the local currency weakened to close the week at 62.80 against the U.S. dollar, down from its 62.9 finish on Thursday.

The peso opened the session at 62.75, weaker than its 62.65 start the previous day. It traded between a low of 62.73 and a high of 62.90, bringing the day’s average to 62.79.

Foreign exchange volume dipped to USD1.39 billion from USD1.45 billion in the prior session. Ricafort forecasts the peso to trade within the 62.75 to 62.90 range on Monday. (PNA)