MANILA – The main equities index ended its three-day rally partly on profit-taking but the peso ended almost unchanged against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 0.83 percent, or 59.57 points, to 7,134.56 points.
All Shares followed with a decline of 0.53 percent, or 22.88 points, to 4,250.37 points.
Most of the sectoral gauges followed the negative close of the main index, led by the Holding Firms, which dropped by 1.24 percent.
Property slipped by 1.06 percent; Industrial by 0.76 percent; Mining and Oil by 0.19 percent; and Services by 0.10 percent.
Only the Financials index gained during the day after it rose by 0.47 percent.
Volume totaled 12.61 billion shares amounting to PHP8.5 billion.
Gainers led losers at 121 to 103, while 49 shares were unchanged.
“The PSEi closed lower due to some profit taking, mixed signals from the US and the higher-than-expected inflation print today,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.
The rate of price increases for November 2020 accelerated to 3.3 percent from 2.5 percent a month ago.
This brought the average inflation rate in the first 11 months this year to 2.6 percent, at the lower half of the government’s 2-4 percent target for 2020-2022.
Meanwhile, the peso ended the week at 48.04, little changed compared to its 48.045 close a day ago.
It opened the day at 48.04, also almost unmoved from the previous session’s 48.045.
It traded between 48.045 and 48.02, resulting in an average of 48.033.
Volume totaled to USD1.02 billion, higher than the USD693.8 million Thursday.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the local currency’s strength partly to seasonal rise of remittances ahead of the holidays and the conversion of the dollars into peso.
He said the latest USD2.75 billion dollar-denominated bond issuance of the government also buoyed the peso since this “could add to the country's BOP (balance of payment) and GIR (gross international reserve) (well into new record highs).”
“(The) peso (is) also stronger after the weak US dollar vs. major global currencies to new 2.5-year lows recently after improved global market risk appetite, with the recent near record highs in the US stock markets as well as some gains in emerging markets, amid market optimism on progress on various Covid-19 vaccines, the latest of which is Moderna that showed potential for durable immunity,” he said.
Ricafort forecasts the peso to trade between 47.98 to 48.08 to a greenback on Monday while the projected range for next week is between 47.90 to 48.15. (PNA)
