THE peso fell back to the P56:$1 level on Friday, but the stock market finally closed above 7,000 following the release of latest US inflation data.
The currency weakened by 22-and-a-half centavos to end the day at P56.2 against the greenback while the benchmark Philippine Stock Exchange index (PSEi) added 79.79 points, or 1.15 percent, to 7,024.67 — the highest since Feb. 3, 2023’s 7,027.38.
The broader All Shares index grew by 25.44 points, or 0.68 percent, to 3,791.65.
The peso opened at P56.08:$1 and ranged from P55.96 to P56.2. Volume reached P1.695 billion, slightly lower than P1.712 billion in the previous session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the dollar had corrected higher against major currencies.
The dollar firmed after US inflation data raised expectations that the US Federal Reserve would not be ordering a substantial rate cut next week.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco, meanwhile, said “the local bourse took cues from Wall Street’s overnight rise driven by the decline in the US’ headline inflation last August.”
“NEDA’s (National Economic and Development Authority) projection of the local economy growing faster in the 2nd half of the year compared to the first half also gave the market a boost,” he added.
China Bank Capital Corp. Managing Director Juan Paolo Colet said that “if the 7,000 breakout is sustained in the next few days, the market may attempt to hurdle the next resistance at 7,100,” he continued.
Regina Capital Development Corp. Managing Director Luis Limlingan, for his part, said “Philippines shares finally closed above the 7,000 mark after multiple attempts as investors brushed off the latest CPI (consumer price index) reading in the US and focused later on the unemployment figures.”
“In contrast, US stocks saw a volatile session on Wednesday, ultimately rising as investors digested the latest US inflation data and its potential implications for Federal Reserve policy,” he added.
All sector indices closed in the green with property up the most by 1.40 percent.
Decliners outnumbered gainers, 107 to 90, while 60 were unchanged.
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