Peso weakens further but PSEi regains ground

By The Manila Times
August 25, 2023

THE peso fell for a third straight day against the dollar on Thursday, but the stock market snapped a four-day decline with investor sentiment said to have lifted somewhat.

The currency weakened by 3 centavos to P56.76 versus the greenback, while the benchmark Philippine Stock Exchange index (PSEi) bounced back by 46.15 points, or 0.75 percent, to end the day at 6,225.78.

The broader All Shares followed with a 17.94-point or 0.54-percent gain to 3,357.57.

“After four straight sessions in negative territory, the market finally traded higher to close above 6,200 as the index tracked the positive performance of US and Asian markets, with sentiment lifted by easing US treasury yields and indications of softening US private sector business activity,” China Bank Capital Corp. Managing Director Juan Paolo Colet said.

He added that flash purchasing managers’ index data for the US showed that aggressive monetary tightening by the US central bank was having an impact.

“Whether today’s (yesterday’s) rise in the PSEi is a mere technical rebound or the beginning of a sustained recovery will depend on Fed Chair[man] Jerome Powell’s remarks [this Friday, US time],” Colet continued.

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said that “besides bargain hunting, the Philippine Stock Exchange index also gained due to the positive spillovers from Wall Street amid the retreat of the US’ bond yields.” “The bourse traded in the green territory for the whole session but had its gains tempered in the second half as investors wait for cues from Federal Reserve Chairman Jerome Powell’s statements in the upcoming Jackson Hole symposium,” he added.

The peso opened trading at P56.58:$1 and ranged from P56.57 to P56.83. Volume reached P1.133 billion, lower than the P1.555 billion recorded in the previous session.

At the stock market, all sectoral indices closed in the green with financials up the most by 1.52 percent.

Moreover, around 415.26 million shares worth around P3.31 billion changed hands as well.

Volume rose from the previous day with just over 412.26 million shares worth some P3.3 billion having changed hands.

Gainers outnumbered losers, 102 to 60, while 47 remained unchanged.