PSEi slides but PH peso strengthens vs. US dollar

The Philippine Stock Exchange index (PSEi) ended Wednesday lower due to profit-taking despite a cooling domestic inflation rate last July, while the peso strengthened against the United States dollar.

The local bourse’s main index dipped 0.16 percent to 6,286.31 points, while the broader All Shares index fell 0.07 percent to 3,412.82 points.

Most of the sectoral gauges also finished in the negative territory, led by Financials after it fell 0.33 percent.

It was trailed by Industrial, 0.31 percent; Property, 0.17 percent; Services, 0.09 percent; and Holding Firms, 0.06 percent.

Only the Mining and Oil counter gained during the day, rising 4.63 percent.

Volume rose to 1.35 billion shares amounting to PHP6.83 billion.

Advancers led decliners at 102 to 84, while 49 shares were unchanged.

In a market report, Regina Capital Development Corporation sales head Luis Limlingan said the PSEi dipped “despite a better-than-expected inflation print, as late-session profit-taking erased earlier gains and dragged the index into negative territory.”

The Philippine Statistics Authority reported during the day that inflation eased to 6.2 percent in July from 6.4 percent the previous month. This deceleration was driven by slower annual increases in the transport index, following a decline in fuel prices given the developments in the Middle East.

Average inflation for the first seven months of the year stood at 5 percent, exceeding the government’s 2 percent to 4 percent target band but sitting below the 6.4 percent average projected by the Bangko Sentral ng Pilipinas.

Meanwhile, the local currency appreciated against the United States dollar, finishing the day’s trade at 60.75 from Tuesday’s close of 61.16.

It opened the session at 60.99, slightly weaker than its previous opening of 60.95.

The peso traded between 60.64 and 61.05, bringing the average for the day to 60.85.

Volume reached USD2.17 billion, up from the previous session’s USD1.65 billion.

-Philippine News Agency