PSEi steady, peso up as traders await market catalysts

The Philippine Stock Exchange index (PSEi) closed almost unchanged on Monday as cautious investors turned their focus toward the next market catalysts following last week’s economic growth data, while the peso managed gains against the United States dollar.

The local bourse’s main index went down 0.02 percent to 6,289.21 points, but the broader All Shares rose 0.07 percent to 3,420.77 points.

Most sectoral gauges finished in the negative territory, led by the Industrial counter which dipped 0.47 percent.

Services followed with a 0.22-percent decline, while Mining and Oil shed 0.17 percent, and Property, 0.03 percent.

However, Holding Firms rose 0.98 percent and Financials, 0.10 percent.

“The local bourse ended lower as trading remained relatively flat amid cautious sentiment. Investors are assessing the next market catalyst following the weak 2Q GDP (second-quarter gross domestic product) print,” Regina Capital Development Corporation head of sales Luis Limlingan said.

Last week, the Philippine Statistics Authority reported that second-quarter economic growth slowed to 2.3 percent, down from 2.8 percent in the first quarter, due to the impact of the Middle East crisis on inflation and fuel costs.

Limlingan said market attention shifts to the Aug. 27 Bangko Sentral ng Pilipinas (BSP) meeting and its potential impact on market sentiment, where analysts predict a rate hike to tackle elevated prices.

Meanwhile, the peso ended stronger at 60.70 to a U.S. dollar from its 60.9 close last Friday.

It opened the day at 60.85, better than its 60.9 start in the previous session.

The local currency traded between 60.85 and 60.70, resulting in an average of 60.77.

Volume declined to USD1.47 billion from USD1.84 billion at the end of last week.

-Joann Villanueva/Philippine News Agency