PHP closes sideways vs. USD on Manchester suicide attack, PSEi still up

Suspected terrorist attack at the concert of US pop singer Ariana Grande in Manchester, England Monday night increased risk-off sentiment among investors that resulted in the sideways close of the Philippine peso, but the main stocks index managed to post gains. (Photo: Cheng Ilagan/Philippine Canadian Inquirer)

MANILA—Suspected terrorist attack at the concert of US pop singer Ariana Grande in Manchester, England Monday night increased risk-off sentiment among investors that resulted in the sideways close of the Philippine peso, but the main stocks index managed to post gains.

The Philippine Stock Exchange index (PSEi) rose 0.07 percent, or 5.57 points, to 7,812.14 points and a trader said foreign fund flows continued to remain high amid worries overseas.

Foreign buying reached Php 3.673 billion during the day, higher than the foreign selling that amounted to Php 3.526 billion.

Thus, All Shares was able to also post improvement after it rose 0.16 percent, or 7.23 points, to 4,662.16 points.

Mining and Oil registered the highest increase among the sectors after it went up 0.96 percent.

It was followed by the Holding Firms, 0.28 percent, Services, 0.24 percent, Property, 0.22 percent, and Industrial, 0.20 percent.

Only the Financials ended on the red after it fell 0.30 percent.

Volume for the day involved 1.17 billion shares amounting to Php 7.4 billion.

Losers, on the other hand, led gainers at 97 to 93 while 49 shares did not move.

The local currency finished the day at 49.82, little changed from Monday’s 49.77.

Another trader said the bombing in Manchester spooked some investors, thus, the slight weakness of currencies of emerging market economies (EMEs) like the peso.

“This is expected to be a knee-jerk reaction to the bombing and currencies are projected to regain strength Wednesday,” the trader said.

The Manchester suicide attack, which killed 22 people and injured 59 others, resulted in the weaker opening for the peso at 49.78 from 49.70 a day ago.

It traded between 49.74 and 49.85 resulting an average of 49.78 for the day.

Volume for the day reached USD572 million, higher than the USD429.1 million in the previous session.

Asked about issues related to investors concerns on reports involving US President Donald Trump and Russia, the trader said reports came in trickles in the past two days and its impact on the financial markets was barely seen.

With the combination of these factors, the currency pair is seen to trade between 49.70 and 49.90 Wednesday.