PH stocks, peso end week up

 

Risk-on sentiments reigned on the local bourse Friday resulting in the positive close of all the counters and the peso ended sideways.

 

The Philippine Stock Exchange index (PSEi) rose for the third consecutive day after it jumped by 0.92 percent, or 54.53 points, to 5,999.40 points.

 

All Shares posted an uptick of 0.67 percent, or 23.99 points, to 3,586.27 points.

 

Property led the sectors with a rise of 0.99 percent and was followed by Holding Firms, 0.98 percent; Industrial, 0.86 percent; Financials, 0.80 percent; Services, 0.24 percent; and Mining and Oil, 0.13 percent.

 

Volume totaled 1.47 billion shares amounting to PHP4.91 billion.

 

Gainers led losers at 93 to 92 while 57 shares were unchanged.

 

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the main stocks index’ performance partly to the further re-opening of the economy, improvement in manufacturing data, and market sentiments, with the latter due to “progress of the USD2.2 trillion US stimulus discussions.”

 

He forecasts the PSEi’s next resistance level to be around 6,000-6,150.

 

“Prospectively, the markets are anticipating if there would be a Santa Claus rally towards the end of the year, as a function of any convergence in positive factors, especially any further easing of new local COVID-19 cases tapering off from record highs, any further positive developments on vaccines for COVID-19, easing of GCQ on Metro Manila to MGCQ that allows higher capacity for some businesses/industries, and any further moves to re-open the economy such as tourism and other industries, all of which would help improve economic recovery prospects and valuations,” he said.

 

Relatively, the peso finished the day sideways against the greenback at 48.48 from Thursday’s 48.43.

 

It opened the day at 48.42, little changed from its 48.46 start.

 

It traded between 48.5 and 48.42, resulting in an average of 48.463.

 

Volume totaled to USD814.9 million, higher than the previous day’s USD807.6 million.

 

Ricafort said the peso ended this week at its strongest since November 3, 2016, which is 48.34, due to soft bank lending and domestic liquidity report for August 2020, as well as reports that US President Donald Trump tested positive for Covid-19, which, in turn, weighed sentiments around the globe.

 

He, however, said that these were countered by reports that the US Congress has passed the proposed USD2.2 trillion stimulus package and lower global crude oil prices.

 

He forecasts the peso to improved further to 48.00 to a greenback in the coming days on news of lower Covid-19 cases in the country, positive news on vaccine studies, and the seasoning rise of remittances during the holidays.

 

“However, this would be offset by any pick up in importation before the Christmas season as the economy further picks up/re-opens from lockdowns,” he added.

 

Source: Philippines News Agency

 

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