Stocks, peso down on BSP rate decision, US economic news

MANILA – The combination of the latest Bangko Sentral ng Pilipinas (BSP) rate decision and economic news from the United States led to the main gauge of equities and the peso closing negatively on Friday.

The main gauge fell 0.26%, or 18.77 points, to 7,280.57 points.

All stocks fell 1.41%, or 55.59 points, to 3,878.11 points.

Most sector indices also ended trade in negative territory with mining and oil down 2.84%; financial services and holding companies, both down 0.66%; and Industrial, 0.03 percent.

On the other hand, Real Estate progressed by 0.35% and Services by 0.08%.

The volume increased to 2.11 billion shares worth PHP 22.07 billion.

Decliners led Progressives 127 to 66, while 49 stocks were unchanged.

“Philippine stocks fell as investors digested the latest statement from the BSP, earnings reports from US retailers and an update on the job market,” said Luis Limlingan, chief sales officer of the Regina Capital Development Corporation (RCDC).

Citing statements from Bangko Sentral ng Pilipinas (BSP) officials on Thursday, Limlingan underscored the willingness of monetary authorities to maintain an accommodative policy to support the recovery of the national economy.

The BSP Policy Board (MB) on Thursday kept central bank policy rates steady after noting that while domestic growth continues to pick up, it remains fragile.

In the United States, initial unemployment insurance filings fell to 268,000 for the week ending Nov. 13, from 269,000 claims the previous week.

Limlingan said the level is the lowest since March last year and is the seventh consecutive week of declines.

Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael Ricafort attributed the PSEi’s negative close for the week partly to profit taking.

He also cited investor concerns about a further upsurge in coronavirus disease 2019 (Covid-19) infections in some European countries, the high rate of inflation around the world, as well as new stock sales and issuances. bonds on the local market until the end of the year.

“Some election-related leads could also have triggered the recent healthy profit-taking in the local stock market, PSEi, which nevertheless still oscillates among 10-month highs and still close to pre-pandemic highs (since February 2020),” said he declared. .

Ricafort foresees the next level of immediate support for the PSEi between 7,200 and 7,210 levels.

Meanwhile, the peso depreciated to 50.41 against the US dollar from 50.23 a day ago.

It opened the day at 50.27, sideways from its start of 50.33 on Thursday.

It traded between 50.43 and 50.21, giving an average of 50.332.

Volume reached $1.19 billion, down from $1.27 billion in the previous session. (NAP)

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