Manila: The peso strengthened to 58.97 from 59.09 against the dollar on Monday but the Philippine Stock Exchange index (PSEi) declined. The peso opened at 58.97, traded between 58.92 and 59.04, and averaged 58.98 for the day. Earlier, Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. discounted a 60-level close for the Philippine peso in the near term.
According to Philippines News Agency, trading volume fell to USD954 million from USD1.16 billion previously. Rizal Commercial Banking Corporation chief economist Michael Ricafort said Remolona's comments improved market sentiment, alongside President Ferdinand R. Marcos Jr.'s assurance that the government would not allow the peso to reach the 60-level due to its impact on foreign currency-denominated debt.
He cited as plus factors for the Philippine peso the charges filed against suspects involved in anomalous flood control projects, as well as the weakening of the US dollar against major currencies to new four-month lows due to increase in gold prices in the international market.
On the other hand, the local bourse's main index declined 0.94 percent to 6,273.87 points, and the broader All Shares by 0.52 percent to 3,580.43 points. Most of the sectoral gauges also finished the day on the red, namely Services, 2.07 percent; Property, 1.13 percent; Industrial, 0.79 percent; and Holding Firms, 0.73 percent.
Meanwhile, Mining and Oil rose by 3.23 percent and Financials by 0.45 percent. Volume reached 1.22 billion shares amounting to PHP5.78 billion. Decliners led advancers at 117 to 88 while 62 shares were unchanged.
