The Manila Times

Peso drops while PSEi returns to 6,600 level


THE peso and the stock market again switched directions on Tuesday, the former weakening against the dollar and the latter managing a climb back to the 6,600 level.

The peso weakened by 16 centavos to close at P54.45:$1, while the benchmark Philippine Stock Exchange index (PSEi) added 8.12 points, or 0.12 percent, to end the day at 6,603.15.

The broader All Shares also slightly went up, gaining 5.79 points, or 0.16 percent, to settle at 3,519.86.

The PSEi, Rizal Commercial Banking Corp. chief economist Michael Ricafort said, closed slightly higher following news that Silicon Valley Bank (SVB) — whose collapse earlier this month started a global banking crisis — would be bought by First Citizens Bank and Trust.

“The deal included the purchase of about $72 billion SVB assets at a discount of $16.50 billion. This was also amid Disney starting the first round of its 7,000 expected job cuts as well,” he added.

However, Claire Alviar, research associate at Philstocks Financial Inc., noted that investors were still staying on the sidelines with Tuesday’s net market value turnover at just P4.98 billion, “higher than Monday’s figure but lower than the

month’s average, indicating weak market conviction.”

“Most investors remained cautious while monitoring the banking sector. Chart-wise, our support will be at 6,600 level while the resistance is pegged at 6,800,” she added.

Regina Capital Development Corp. Managing Director Luis Limlingan said investors in the US were waiting for the home price data and the latest consumer confidence report.

“The Federal Reserve’s Vice Chair[man] for Supervision Michael Barr will also speak before the Senate Banking Committee on Tuesday, US time,” Limlingan added.

“Back in the Philippines, investors are awaiting the release of the local banking data and window dressing before the quarter ends.”

The peso opened at P54.25:$1, the day’s low, and traded as high as P54.50. Volume reached $1.639 trillion, higher than the $1.082 trillion in the previous session.

At the stock market, almost all sectoral indices closed in the green with mining and oil leading gaining the most by 2.10 percent. Financials and holding firms were the exceptions, dropping 0.69 percent and 0.21 percent, respectively.

Just over 911 million shares worth P5.34 billion were transacted.

Decliners won against advancers, 95 to 78, while 41 remained unchanged.

Business Times




The Manila Times