Manila: The peso sustained its rise against the US dollar on Monday, continuing its positive trend for the fourth consecutive day, while the Philippine Stock Exchange index (PSEi) concluded the week's first trading day in negative territory due to profit-taking from its recent rally.
According to Philippines News Agency, the local currency closed the day's trade at 58.49, improving from its 58.64 finish last Friday. This continuous appreciation is attributed to several factors highlighted by Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort. These include the recent affirmation by S and P Global of the country's investment-grade rating, an anticipated increase in remittances from overseas Filipino workers, and expectations of a 25 basis points cut in the US Federal Reserve's key rates.
The peso demonstrated its strength early in the day, opening at 58.63, a stronger position compared to the 58.73 start in the previous session. Throughout the trading day, the peso fluctuated between 58.49 and 58.68, with an average of 58.59. Trading volume decreased to USD1.22 billion from USD1.27 billion at the end of last week.
Conversely, the PSEi experienced a decline, shedding 0.55 percent to close at 5,989.29 points, with the broader All Shares index dropping by 0.69 percent to 3,543.78 points. Most sectoral indices ended in the red, including Holding Firms, which fell 1.88 percent, Property down 0.74 percent, Financials decreasing by 0.28 percent, and Industrial slightly slipping by 0.02 percent. However, the Mining and Oil index rose by 2.47 percent, and Services increased by 0.58 percent.
The trading volume on the stock exchange reached 1.14 billion shares, valued at PHP6.48 billion. Advancers outnumbered decliners, with 99 stocks gaining and 97 losing, while 65 shares remained unchanged.
Luis Limlingan, head of sales at Regina Capital Development Corporation, explained that the decline in the PSEi was partly due to investors opting to lock in profits ahead of the release of key economic reports expected on Friday. Despite this downturn, there is anticipation of softer November inflation, bolstered by continued rice price deflation, which may provide the Bangko Sentral ng Pilipinas (BSP) with additional leeway to consider another rate cut.
