Peso remains strong, stocks bounce back

Peso remains strong, stocks bounce back
Photo file THEPHILBIZNEWS

By Joann Villanueva

The Philippine peso ended the week still better than the US dollar while the Philippine Stock Exchange index (PSEi) managed to recover amid continued financial market volatility on trade concerns. 

The local currency ended on Friday at 50.8 from 50.865 on Thursday. 

“The peso appreciated, bucking the regional trend, as investors digested latest development on trade,” BPI Research said in its market report. 

The report cited news over the US-China trade discussions, saying “markets continue to grapple uncertainties.” 

This, as officials of the US and China indicate mixed signals in recent days.  

“China’s chief trade negotiator was cautiously optimistic on reaching an accord,” the market report said. 

It also cited news reports about US President Donald Trump’s decision to sign the Hong Kong bill that the US Congress has passed, which BPI Research said “may undermine the fate of the trade negotiations.” 

The peso opened the day’s trade at 50.8, stronger than its 50.95 start in the previous day. 

It traded between 50.845 and 50.725, resulting in an average of 50.78. 

Volume totaled nearly USD1.1 billion, lower than the USD1.44 billion a day ago. 

The currency pair is seen to trade between 50.70 and 51.00 on Monday. 

The main equities index improved by 0.07 percent, or 5.70 points, to 7,824.59 points. 

All Shares also recovered after it improved by 0.18 percent, or 8.28 points, to 4,679.04 points. 

Most of the sectoral gauges ended the week with gains, led by the Mining and Oil with 2.39 percent. It was followed by Services, 0.47 percent; Industrial, 0.31 percent; and Holding Firms, 0.02 percent. 

Volume reached 384.2 million shares amounting to PHP5.5 billion. 

Advancers led decliners at 90 to 88, while 58 shares were unchanged. 

(First published by PNA)

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