POSITIVE SENTIMENT. Upbeat sentiments from the US bouys both the main equities index and the peso on Monday (July 18, 2022). Among others, US reported on Friday the 1-percent increase in retail sales last June, higher than the 0.9 percent expectations.
MANILA – The main equities index recovered on Monday while the peso gained against the greenback due partly to positive economic news from the United States.
After sliding for most of last week, the Philippine Stock Exchange index (PSEi) gained by 1.19 percent, or 73.52 points, to 6,268.78 points.
All Shares followed with a jump of 0.73 percent, or 24.33 points, to 3,370.06 points.
Most of the sectoral counters also finished with gains, led by Property after it rose by 3.56 percent.
It was trailed by Holding Firms, 1.42 percent; Financials, 0.14 percent; and Industrial, 0.005 percent.
On the other hand, Mining and Oil slipped by 0.59 percent and Services by 0.56 percent.
Volume was thin at 521.89 million shares amounting to PHP4.24 billion.
Decliners led advancers at 91 to 89, while 55 shares were unchanged.
“Philippine shares echoed the positive sentiment of the US, which closed sharply higher last Friday ending several days of sell-offs with a rebound fueled by upbeat earnings, strong economic data, and easing fears for a larger-than-expected interest rate hike by the Federal Reserve,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Among the economic-related news that boosted sentiments include US’ June retail sales, which rebounded and exceeded expectations after it rose by 1 percent compared to consensus of a 0.9-percent expansion.
Analysts said this is a positive development amidst the continued soaring of US’ inflation rate, which inched up further to 9.1 percent in the sixth month this year, the higher since November 1981.
Meanwhile, the local currency improved against the greenback after finishing the day at 56.35 from 56.36 last Friday.
It opened Monday at 56.3 and traded between 56.39 and 56.27.
The average level for the day stood at 56.34.
Volume was low at USD561.75 million compared to the USD678.3 million in the previous session. (PNA)
