Peso drops anew; PSEi regains ground

By The Manila Times
August 04, 2023

THE peso fell further into P55:$1 territory but the stock market rebounded back to the 6,500 level in the wake of Tuesday’s United States credit rating downgrade.

The currency weakened by 33 centavos to P55.52 versus the dollar while the benchmark Philippine Stock Exchange index (PSEi) gained 93.48 points, or 1.44 percent, to end Thursday at 6,576.76.

The broader All Shares followed suit, adding 35.63 points, or 1.03 percent, to 3,499.49.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso continued to be affected from the fallout of the US downgrade.

“The peso also weakened due to the tail end of the seasonal increase in OFW (overseas Filipino worker) remittances for tuition and other school opening-related payments,” he added.

Philstocks Financial Research and Engagement Officer Mikhail Plopenio, meanwhile, said the PSEi was boosted by bargain-hunting and optimism that inflation had cooled last month.

Official data for July will be released today, August 4.

China Bank Capital Corp. Managing Director Juan Paolo Colet said the market had “brushed aside worries about the US credit downgrade and rallied on the back of strong corporate earnings from key names and expectations that the Philippine July CPI (consumer price index) print will show sustained inflation deceleration.”

“Investors took advantage of the recent selloff to pick up index names that have reported or are poised to report healthy first-half 2023 results,” he added.

The peso opened trading at P55.3:$1 and ranged from P55.27 to P55.565. Volume reached P1.280 billion, higher than the P1.106 billion recorded in the previous session.

At the stock market, mining and oil was the only sector to close in the red, ending the day down 0.60 percent. Property had a particularly good day with a 2.88-percent surge.

Volume was just under 1.20 billion shares worth P3.95 billion.

Gainers edged losers, 99 to 81, while 50 securities remained unchanged.