LACK OF CATALYSTS. The main equities index manages to finish Monday's (June 20, 2022) trading up amidst the lack of drivers both locally and overseas. However, the peso continued to slip against the US dollar and finished at 54-level ahead of the policy rate setting meeting of the Bangko Sentral ng Pilipinas (BSP) on Thursday (June 23, 2022).
MANILA – The local stock barometer barely moved on Monday ahead of the holiday in the United States, but the peso weakened further to 54-level against the US dollar.
The Philippine Stock Exchange index (PSEi) rose by 0.04 percent, or 2.38 points, to 6,333.94 points.
All Shares fell by 0.21 percent, or 7.17 points, to 3,387.78 points.
Most of the sectoral indices slipped during the day namely Property, 1.16 percent; Mining and Oil, 0.99 percent; Services, 0.67 percent; and Financials, 0.07 percent.
On the other hand, Holding Firms rose by 0.92 percent and Industrial by 0.05 percent.
Volume reached 746.92 million shares amounting to PHP3.57 billion.
Decliners led advancers at 108 to 81, while 52 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said the local bourse started the week on quiet trading due to the Juneteenth National Independence Day holiday in the US on June 20.
He said sentiments were up last Friday “after traders parsed comments from Federal Reserve officials who reiterated that the central bank needs to do more to curb the hottest inflation in 40 years.”
This, after the US consumer price index (CPI) accelerated further to 8.6 percent last May, the highest since 1981.
Among the drivers from the US for this week’s equities trading include the durable goods report and speaking engagements of several Federal Reserve officials.
On the local front, Limlingan said the policy-rate setting of the Bangko Sentral ng Pilipinas (BSP) on Thursday will be among the catalysts for trading this week.
Meanwhile, the local currency continues to weaken to its more than three-year low against the US dollar after ending Monday's trade at 54.065 from 53.75 last Friday.
Analysts and economists traced the peso’s weakness to concerns for additional hikes in both the BSP and the Fed’s key rates due to accelerating inflation rate.
It opened the day at 53.8, weaker than its 53.47 start in the previous session.
It traded between 53.8 and 54.105, bringing the day’s trade to 54.055.
Volume reached USD1.02 billion, higher than the USD962.5 million at the end of last week. (PNA)
