Peso, PSEi post improvements on better investors’ sentiment

By Joann Santiago

MANILA, July 23 (PNA) — Both the Philippine peso and the local bourse posted gains Wednesday on the back of improving investors’ sentiment in the region.

The local currency strengthened by P0.17 after finishing the day at 43.23 from 43.41 a day ago.

”The slight deceleration of US inflation rate last June also dampened hopes that the Fed (Federal Reserve) will be bold enough to end its stimulus program earlier than expected,” a trader told PNA in an interview.

The Fed is earlier expected to end its stimulus program, which to date amounts to USD 35 billion, in the third quarter of the year.

But with the slower rate of price increases last June which, according to the US Labor Department rose by 0.3 percent, slower than month-ago’s 0.4 percent, the trader said this will not push US monetary officials to immediately end their bond-buying program.

These factors made the local currency opened at 43.34 for the day, almost unchanged from the 43.35 in the previous trading.

It traded between 43.35 and 43.21 bringing the day’s average at 43.28.

Volume of trade reached USD 879.3 million, slightly higher than the USD 723.5 million a day ago.

For Thursday, the peso is projected to trade between 43.30 and 43.50.

Relatively, the Philippine Stock Exchange index (PSEi) also posted gains although there remains to have some worries regarding the geo-political situation in the Middle East.

The main index went up by 0.33 percent or 22.98 points to 6,892.982 points.

Most of the sectoral indices followed the PSEi led by the industrial, which rose 1.49 percent or 155.29 points to 10,552.79 points.

On the other hand, the financials counter declined by 0.35 percent or 5.80 points to 1,645.82 points.

Volume of trade reached 960.62 million amounting to P6.74 billion.

Gainers led losers at 82 to 80 while 65 were unchanged. (PNA)