PH peso, stocks end week up
MANILA -- Both the Philippine peso and the main stocks gauge ended Friday on a positive note, a day after the Bangko Sentral ng Pilipinas (BSP) cut key rates anew.
The local currency finished the trade at 49.92 from 50.00 a day ago.
It opened the day at 50.00, little changed from its 50.05 start Thursday.
It appreciated to as much as 49.89 without moving beyond its opening level, which resulted to an average of 49.939.
Volume totaled to USD738.2 million, lower than the USD848.93 million in the previous session.
Relatively, the Philippine Stock Exchange index (PSEi) recovered after a three-day slide. It rose by 1.20 percent, or 73.58 points, to 6,191.84 points.
All Shares increased by 0.84 percent, or 30.17 points, to 3,631.15 points.
Services led the sectors during the day after it jumped by 2.02 percent and was trailed by the Holding Firms, 1.35 percent; Financials, 1.13 percent; Mining and Oil, 0.99 percent; Industrial, 0.68 percent; and Property, 0.48 percent.
Volume totaled to 1.07 billion shares amounting to PHP5.3 billion.
Gainers led losers at 99 to 91 while 54 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation head of sales, said easing bank regulations to cushion the economic impact of the pandemic backed investors’ sentiments.
For one, the BSP’s policymaking Monetary Board (MB) on Thursday cut the central bank’s key rates by another 50 basis points, bringing the total reduction to date to 175 basis points.
Effective Friday, June 26, the BSP’s overnight reverse repurchase (RRP) rate is at recordlow of 2.25 percent, while the overnight lending rate is at 2.75 percent and the overnight deposit rate is at 1.75 percent.
The rate cut was made to help buoy the domestic economy, which is expected to contract this year as a result of the pandemic but is expected to post a rebound next year.
On the other hand, Limlingan cited that anxieties remain for the global growth this year given the rising cases of coronavirus disease (Covid-19) around the world. (PNA)