WEAKER PESO. The Philippine peso keeps its footing against the US dollar on Monday (April 11, 2022) but the main stocks index slides on a lack of catalyst at the start of the Holy Week. Both were also affected by the anticipation of further hikes in the Federal Reserve rates. (PNA file photo)
MANILA – The Philippines’ main stocks index finished the Holy Week’s first trading day weaker as the peso finished sideways against the US dollar although at the 52-level.
The Philippine Stock Exchange index (PSEi) shed 0.42 percent, or 29.73 points, to 6,988.29 points.
It was trailed by all the other counters, with the All Shares slipping by 0.30 percent, or 11.24 points, to 3,728.21 points.
Property registered the biggest drop among the sectoral indices after it fell by 0.74 percent and was followed by Mining and Oil, 0.65 percent; Industrial, 0.47 percent; Holding Firms, 0.39 percent; Financials, 0.11 percent; and Services, 0.08 percent.
Volume was thin at 882.34 million shares amounting to PHP3.36 billion.
Decliners surpassed advancers at 102 to 75, while 55 shares were unchanged.
“Philippine shares were quietly sold down as the market lacked major catalysts during the shortened trading week,” Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said.
There will be no trading on the last two days of this week’s session because Maundy Thursday and Good Friday have been declared holiday by Malacañang.
“Sentiment also didn’t get much of a boost as US equities notched losses for the week but ended mixed on Friday as investors braced for tighter monetary policy from the Fed,” Limlingan added.
On the other hand, the local currency ended the trade at 52.05 from 51.59 Friday last week.
It opened the day at 51.7 and traded between 52.08 and 51.69. The average level for the day stood at 51.91.
Volume totaled USD1.64 billion, higher than the previous session’s USD1.1 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, in a reply to e-mailed questions from the Philippine News Agency, said the local unit closed to its weakest since March 29, 2022 when it finished at 52.075 “after the benchmark 10-year US Treasury yields again posted new three-year highs.”
He said the debt paper breached the 2.70 percent levels “amid recent hawkish Fed(eral Reserve) signals that led to stronger US dollar vs. major global currencies to new highs in nearly two years.”
This boost was, however, countered by the drop in oil prices in the international market to among its three-week lows at around USD95 per barrel, he said.
“(The) peso (is) also weaker after US officials warned that the war in Ukraine could last for weeks or even years,” he said while also noting the jump in the UN World Food Price Index to a new record high last March.
Ricafort said the peso’s next resistance level is around the 52.20 level while it is projected to trade between 51.95-52.15 to the US dollar on Tuesday. (PNA)
