The Philippines’ main equities index ended the week on the red due to correction after days of rally but the peso kept its footing against the greenback.
The Philippine Stock Exchange index (PSEi) lost 0.30 percent, or 22.11 points, to 7,289.61 points.
All Shares followed with a decline of 0.27 percent, or 12.22 points, to 4,462.70 points.
Most of the sectoral indexes also went down during the day and these are the Industrial, 1.16 percent; Mining and Oil, 0.95 percent; Property, 0.42 percent; and Holding Firms, 0.40 percent.
On the other hand, Financials rose by 0.63 percent and Services by 0.23 percent.
Volume was thin at 785.36 million shares amounting to PHP5.32 billion.
Decliners surpassed advancers at 105 to 82 while 57 shares were unchanged.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, in a reply to e-mailed questions from PNA, attributed the main index’s decline to “healthy correction” after a five-day rally.
Amidst the negative close of the PSEi during the day, he said its level remains among the highest in more than nine months “as US stock markets mostly posted new record highs recently, especially the S&P 500 after stronger US initial jobless claims and existing home sales data, as well as generally better US corporate earnings/results.”
He also cited decisions of local governments outside of the National Capital Region (NCR) to adopt the Alert Level System as a movement restriction measure, which, he said, will further open economies outside Metro Manila.
He forecasts PSEi’s immediate major support levels at between 6,980-7,050 levels and the next resistance level at between 7,400-7,500 levels.
On the other hand, the peso ended the week at 50.786 to a US dollar, little changed from its 50.81 close a day ago.
It opened the day’s trade flat at 50.8 and traded between 50.895 and 50.735. Average level for the day stood at 50.832.
Volume rose to USD1.068 billion from the previous day’s USD704.19 million.
Ricafort traced the peso’s strength to the government’s bid to further accelerate its vaccination program against the coronavirus disease 2019 (Covid-19) and continued easing of the movement restrictions.
He said proposals to temporarily cut excise taxes on domestic fuel products also supported the local currency but noted the need for “a delicate balance with sound fiscal management amid foregone government revenues that could widen the budget deficit and increase overall debt.”
For next week, the peso is seen to trade between 50.20-50.30 against the US dollar.
Source: Philippines News Agency