THE peso rose for a third day against the dollar but the stock market fell back to the 6,400 level on Friday after the release of June inflation data.
The currency strengthened by 5 centavos to P58.53 against the dollar, its best close in nearly a month, while the benchmark Philippine Stock Exchange index (PSEi) shed 14.74 points, or 0.23 percent, to end the trading week at 6,492.75.
The broader All Shares index also fell, by 0.20 percent or 6.88 points, to 3,508.99.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that better-than-expected inflation of 3.7 percent — the consensus in a Manila Times poll of economists was 3.9 percent — had bolstered the peso.
It opened trading at P58.54:$1 and ranged from P58.51 to P58.6. Volume reached P836 million, down from Thursday’s P1.014 billion.
Philstocks Financials Inc. research associate Claire Alviar, meanwhile, said the PSEi fell as traders chose to take profits following two consecutive days of gains.
“The market mostly traded in the green as investors reacted positively to the June inflation rate, which slowed to 3.7 percent from the previous month and was near the lower end of the Bangko Sentral ng Pilipinas forecast,” she added, noting that this had raised the likelihood of the central bank cutting rates in August.
“However, sentiment was dampened by the national government’s outstanding debt reaching a record high,” Alviar continued.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “the main bourse slipped below 6,500 after trading more than half a percent up intraday.”
“Investors turned into profit takers using the CPI (consumer price index) reading to sell on news and close positions to kick off the first week of the second half of 2024,” he added.
“Foreign funds are preparing for Friday’s highly anticipated jobs report after the US was closed for the 4th of July holiday,” Limlingan continued.
Be the first to comment