Peso, PSEi inch down

MANILA-- The peso finished Monday little changed against the greenback while the main equities index fell on what traders partly traced to wait-and-see stance ahead of President Rodrigo R. Duterte's second State of the Nation Address (SONA)

The local currency finished the week's first trading day at 50.73, almost unchanged from the 50.71 close Friday last week.

A trader said risk-off sentiment was also up ahead of the Federal Open Market Committee (FOMC) meeting on July 25-26 and the release of advance estimate for the US economy's second quarter output, among others.

Another factor is investors' apprehension on the path of US President Donald Trump's reform agenda as well as foreign selling in the local equities market, which closed for the day before the President delivered his SONA.

The local unit opened the day at 50.69, slightly better than the 50.75 in the previous session.

It traded between 50.78 and 50.68, resulting to 50.74 average for the day.

Volume of trade reached USD284.9 million, lower than the USD468.16 million at the end of last week.

The currency pair is seen to trade between 50.60 and 50.80 Tuesday.

The Philippine Stock Exchange index (PSEi), on the other hand, shed 0.34 percent, or 27.09 points, to 7,962.64 points due to profit-taking.

A trader said lots of investors did not consider any change in the FOMC stance after its meeting this week but said markets would be focusing on any change in the language regarding inflation and balance sheet normalization.

After the FOMC's meeting last June, Fed Chair Janet Yellen hinted the possible cut in on the central bank's balance sheet in the coming months given the improvement in the world's largest economy.

With these, most of the other indices finished on the red, with the broader All Shares losing 0.27 percent, or 12.97 points, to 4,758.67 points.

Mining and Oil and Property both lost 0.49 percent, Industrial by 0.39 percent, Holding Firms by 0.36 percent, and Financials by 0.10 percent.

Services was the only index that finished with gains but only by 0.01 percent.

Volume for the day reached 2.71 billion shares amounting to PHP5.85 billion.

Losers led gainers at 109 to 100 while 50 stocks were unchanged.

Source: Philippines News Agency