MANILA – Both the local stock market and currency closed this week strong after the central bank kept its key policy rate at a record low of 2 percent and the expected arrival of more coronavirus disease 2019 (Covid-19) vaccines in the country.
On Friday, the Philippine Stock Exchange index (PSEi) improved by 64.51 points to the 6,950.51 level, with all counters marked green.
All shares increased by 29.69 points to 4,229.58.
The Mining and Oil sector reversed its decline during Thursday’s trading, recording the highest gains of the day – up by 95.44 points to 9,322.39.
This was followed by Holding Firms, which gained 65.86 points to reach 6,931.29; Industrial, up by 37.34 points to 9,542.37; Property, up by 21.98 points to 3,415.61; Services, up by 21.89 points to 1,583.55; and Financials, up by 9.02 to 1,500.37.
In an e-mail, Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said the PSEi’s closing on Friday was among this year’s highs since February 18.
“Going forward, any sustained breach above the five-month immediate major resistance of 6,920 levels could re-test the psychological 7,000-mark, particularly a potential re-test of the 7,100 to 7,400 immediate highs posted earlier this year,” Ricafort said.
He added that since the Covid-19 lockdown low of 4,039.15 on March 19, 2020, the local bourse has posted total gains of 72.1 percent.
The economist noted that the arrival of more Covid-19 vaccines in the coming weeks, as well as the faster rollout of the immunization program, could help ease new cases of infection.
“The expected increase in Covid-19 vaccine arrivals, especially in third quarter 2021 and/or fourth quarter 2021 could help further reduce new Covid-19 cases in a more meaningful manner, justify further re-opening of the economy, including some hard-hit industries/sectors, thereby improve confidence by consumers and businesses, and provide greater support to the overall economic recovery prospects,” Ricafort said.
Meanwhile, the Philippine peso finished the week strong at 48.48 to the US dollar from the previous day’s closing of 48.74, gaining PHP0.26.
The local currency also kicked off the day’s trading higher at 48.65 compared to Thursday’s opening of 48.76 to the dollar.
The currency pair traded from a low of 48.45 to a high of 48.66, bringing the weighted average for the day at 48.62 to the greenback.
Traded volume on Friday was lower at USD985.2 million than Thursday’s USD1 billion. (PNA)
