Business and Economy
PSEi rises to 7,800-level, peso firm vs. USD
Investors tended to be more cautious Friday ahead of the release of US’ April 2017 employment situation report later in the day but the Philippines’ equities market managed to end the week upbeat and the peso remained firm. (Photo: Flickr/_ACON_)
MANILA—Investors tended to be more cautious Friday ahead of the release of US’ April 2017 employment situation report later in the day but the Philippines’ equities market managed to end the week upbeat and the peso remained firm.
The Philippine Stock Exchange index (PSEi) surged to 7,841.99 points, up by 1.11 percent or 86.24, which a trader attributed to positive corporate earnings reports.
The trader said news about the thumbs up by the House of Representative’s Ways and Means Committee on the substitute tax reform bill made investors optimistic of the measure’s eventual approval.
These factors resulted in gains of most of the indices, with All Shares tracking the main index after it rose 0.81 percent.
Five of the six sectoral indices registered improvements, with Property leading the list after expanding 2.15 percent.
Financials, Holding Firms, Services, and Industrial increased by 1.04 percent, 0.79 percent, 0.77 percent, and 0.55 percent, respectively.
Only the Mining and Oil finished the week on the red with a 1.008 percent drop, which the trader said was due to weak oil prices and profit-taking.
Volume for the day reached 2.03 billion shares amounting to Php 14.6 billion.
Gainers led losers at 107 to 93 while 40 shares were unchanged.
The local currency finished the week at 49.91 from 49.87 a day ago, which a trader pointed to higher US Treasury yields.
Hopes for increase in the Federal Reserve rates by June also helped buoyed the US dollar after Fed officials said they believed that the slower economic activities in the first quarter of the year was likely transitory.
The peso opened the day better at 49.88 from 50.00 in the previous session.
It traded between 49.86 and 49.96 resulting in an average of 49.90.
Volume of trade reached USD443.7 million, lower than the USD645.3 million a day ago.
The currency pair is seen to trade between 49.70 and 50.00 next week.
