[ad_1]
MANILA – The peso started the week sideways against the US dollar, while the Philippine Stock Exchange index (PSEi) barely moved in part due to the tension between the United States and China and the resurgence of cases of the coronavirus disease 2019 (Covid-19) in Europe.
The peso closed the day at 48.365 to one dollar, little changed from its close of 48.395 last Friday.
It opened the day at 48.38, also sideways from its 48.46 start in the previous session.
It traded between 48.39 and 48.35, which resulted in an average of 48.367.
Volume totaled USD662.83 million, down from USD832.54 million at the end of last week.
ING Bank Manila senior economist Nicholas Mapa said the local currency remains one of the best performing currencies in the region, with the peso closing at its nearly four-year high against the US dollar.
However, he said that “the relative strength (of the peso) may actually reflect an investment boom that is fading fast and the economic outlook turning even darker on the horizon.”
Mapa said imports have weakened due to the pandemic and this partly translated into weaker demand for the US dollar which, in turn, boosted the peso.
“A modest rebound in FDI (foreign direct investment), coupled with an increase in external borrowing, has also helped support PHP, but as the peso continues to strengthen, we regret the loss of potential production with the rise of the investment now gone, “he said.
Meanwhile, the main stock index closed the first trading day of the week up 0.007 percent, or 0.42 points, to 5,909.32 points.
Most other accountants, however, ended the day in the red, with all stocks falling 0.14 percent, or 4.81 points, to 3,548.77 points.
Mining and Oil registered the largest drop among the sectors with 0.76 percent, and was followed by Services, which decreased 0.66 percent; Industrial, 0.32 percent; Finance, 0.29 percent; and Holding Firms, 0.02 percent.
Only the property index followed the main indicator with an increase of 0.69 percent.
The volume amounted to 2.13 billion shares worth PHP4.27 billion.
The losers led the winners at 138 to 58, while 42 stocks were unchanged.
“The PSEi closed almost unchanged amid uncertainty about a new round of fiscal stimulus from Washington and the latest update on the tension between China and the United States,” said Luis Limlingan, head of sales at Regina Capital Development Corporation.
This after a federal judge issued a preliminary injunction one day before the US government’s decision to ban WeChat takes effect.
The ban by the US government came after it said the mobile app owned by Chinese multinational company Tencent is a security threat.
Meanwhile, fears of a second wave of coronavirus disease 2019 (Covid-19) in Europe have risen due to an increase in cases in the UK, Italy and Belgium, among others. (PNA)
[ad_2]
