Peso ends week sideways, stocks decline

in News

MANILA — The Philippine peso ended the week sideways against the US dollar while the Philippine Stock Exchange index (PSEi) reversed to a loss on US and China trade news.

The local currency on Friday closed at 50.49 from 50.48 Thursday, which a trader pointed to latest trade news on the world’s two largest economies, specifically on the proposed tariff cut.

It opened the day at 50.52, stronger than its 50.68 start in the previous day.

It improved further to 50.45 mid-trade but also slipped to 50.56, bringing the day’s average to 50.489.

Volume totaled to USD789.65 million, lower than the USD1.15 billion a day ago.

The currency pair is seen to trade between 50.40 and 50.60 on Monday.

On the other hand, the main equities gauge lost 0.10 percent, or 8.05 points, to 8,065.76 points.

All Shares barely rose after a 0.02-percent, or 1.03 points, increase to 4,823.80 points.

Industrial registered the highest uptick at 0.70 percent and was followed by the Services, 0.27 percent; and Financials, 0.21 percent.

Holding Firms shed 0.66 percent, Mining and Oil, 0.27 percent; and Property, 0.02 percent.

Volume reached 689.05 million shares amounting to PHP6.83 billion.

Losers surpassed gainers at 100 to 70, while 66 shares were unchanged.

BPI Research attributed the drop of the PSEi to “resurfacing trade uncertainties.”

“Trade optimism abated on Friday as investors turned cautious amidst reports that the planned tariff rollback by the US and China is currently facing strong resistance in the White House,” it said.

In a market report, Regina Capital Managing Director Luis Limlingan traced the decline of the PSEi to news that the US and China “reportedly agreed to remove existing trade tariffs, sparking a huge rotation into equities and out of bonds.”

Limlingan said tensions have lessened thus, foreign investors withdrew some of their funds from local equities and “re-invested into asset classes closer to their region of domicile.”

“Regional shares traded higher having touched a four-year high early in the session after China said the world’s two largest economies had agreed to cancel additional tariffs imposed in their months-long trade war,” he added. (PNA)

Photo Credit: Philippine News Agency

The Philippine News Agency is a web-based newswire service of the Philippine government under the supervision of the News and Information Bureau (NIB) of the Presidential Communications Office (PCO).

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