Stoks, peso rise on Wednesday

Risk-on sentiments reigned in the local bourse on Wednesday while the peso improved to the 56-level against the United States dollar as investors awaited the release of the minutes of the Federal Open Market Committee's (FOMC) meeting earlier this month, according to a report by Philippine News Agency.

The Philippine Stock Exchange index (PSEi) inched up by 1.25 percent, or 80.67 points, to 6,510.32 points.

All Shares followed with a rise of 0.75 percent, or 25.61 points, to 3,415.76 points.

The sectoral indices were led by Property after it rose by 2.57 percent.

It was trailed by Holding Firms, 1.56 percent; Mining and Oil, 1.24 percent; Industrial, 0.85 percent; Financials, 0.17 percent; and Services, 0.14 percent.

Volume also increased to 802.39 million shares amounting to PHP5.88 billion.

Advancers led decliners at 105 to 83, while 46 shares were unchanged.

“Philippine shares broke through the 6,500 level as investors looked ahead to the publication of the FOMC (Federal Open Market Committee) meeting minutes for clues into the pace of future rate hikes and shrugged fears of further lockdowns in China,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.

Limlingan said US markets will be closed on Thursday for the Thanksgiving holiday and will close early on Friday.

He said oil prices increased “after top exporter Saudi Arabia said OPEC is sticking with output cuts and could take further steps to (reduce) recession worries and concerns about China’s rising Covid-19 (coronavirus disease 2019) case numbers.”

Brent crude oil price rose by 1.2 percent to USD88.53 per barrel and the West Texas Intermediate (WTI) by 1.4 percent to USD81.18 per barrel.

Meanwhile, the peso ended the day at 56.94 to a greenback from its 57.375 close on Tuesday.

It opened the day at 57.25, better than its 57.45 start on Monday.

It traded between 56.94 and 57.33, resulting in an average of 57.203.

Volume increased to USD687.85 million from the previous session’s USD684.4 million.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the local currency got a boost after President Ferdinand R. Marcos denied rumors that Finance Secretary Benjamin Diokno will be replaced, as well as the relatively steady prices of oil in the world market, slowdown in US inflation rate which is expected to limit the rise in the Federal Reserve’s key rates.

For Wednesday, he forecasts the peso to trade between 56.85 and 57.15.