PHP recovers vs. USD, PSEi ends 5-day rally

MANILA -- Jitters on the policies that the US government will implement under US President-elect Donald Trump, who will have his inauguration Friday, and the dovish statement by Federal Reserve chairperson Janet Yellen, led to mixed results for the Philippine peso and the local bourse.

The local currency ended the week sideways to the greenback at 49.92 from 49.98 Thursday, which a trader attributed to Yellen's comment on a gradual increase in the Fed's key rates.

Yellen doused fears about a heating labor market, which she said is not a factor for the Fed to immediately raise rates.

"The peso was in line with other currencies in the region but it did not improve that much since all eyes are on Trump's inaugural," the trader said.

With this combination of factors, the peso opened the day at 49.95 from 50.00 a day ago.

It traded between 49.98 and 50.00 resulting in an average of 49.90.

Volume of trade reached USD716.7 million, higher than the USD560 million a day ago.

The currency pair is seen to trade between 49.60 and 50.00 next week.

On the other hand, the Philippine Stock Exchange index (PSEi) ended its five-day rally after losing 0.19 percent, or 13.42 points, to 7,232.66 points.

However, All Shares rose 0.08 percent, or 3.42 points, to 4,365.63 points.

It was also mixed results for the sectors, with Property, Services, Mining and Oil, and Financials registering increases of 1.10 percent, 0.96 percent, 0.12 percent, and 0.002 percent, respectively.

Meanwhile, Industrial declined by 1.19 percent, and Holding Firms by 0.36 percent.

Volume of trade reached 2.52 billion shares amounting to PHP5.69 billion.

Advancers led decliners at 94 to 84 while 45 shares where unchanged. (PNA)

Source: Philippines News Agency

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