Risk-on sentiments lifted both the main stocks index and the peso, which strengthened to its nearly two-month high, on Friday amidst concerns on the heating inflation and surging bond yields overseas.
The Philippine Stock Exchange index (PSEi) rose by 0.70 percent, or 51.19 points, to 7,382.84 points.
All Shares followed with a 0.30 percent, or 11.78 points, rise to 3,964.68 points.
Half of the sectoral indexes also finished the day up with the Property rising by 1.94 percent; Holding Firms, 0.74 percent; and Financials, 0.38 percent.
On the other hand, Mining and Oil shed 1.67 percent; Industrial, 0.30 percent; and Services, 0.08 percent.
Volume reached 1.55 billion shares amounting to PHP10.42 billion.
Decliners led advancers at 109 to 81, while 50 shares were unchanged.
“Philippine shares closed the Friday session in the green as investors shook off concerns about mounting inflation while surging bond yields sparked a sell-off in tech stocks,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
Meanwhile, the peso gained against the US dollar after it finished the day at 49.85 from the previous session’s 50.165.
It opened the day at 50.08, better than its 50.18 start on Thursday.
It traded between 50.105 and 49.85, resulting in an average of 50.022.
Volume totaled to USD1.067 billion, lower than the previous day’s USD1.14 billion.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the peso closed to its strongest since September 15, 2021 when it closed at 49.79 following the central bank’s report about the increase in the country’s gross international reserves (GIR).
The BSP reported on Friday that the country’s foreign exchange reserves posted a nine-month high of USD108 billion as of end-October 2021.
This amount is equivalent to 10.8 months’ worth of imports of goods and payments of services, and is way higher than the international threshold of around three to four months’ worth of import cover.
Ricafort forecasts the peso’s next support level at between 49.70 but immediate resistance level is between 50.20-50.30.
Source: Philippines News Agency
