The Philippine peso regained strength on Thursday, closing at the 57-level against the US dollar, while the local stock market extended its losing streak.
Peso performance
- Closing Rate: The peso ended the day at P57.88 per US dollar, appreciating by 0.35 from its previous close of P58.23.
- Trading Range: The currency traded between a low of P57.86 and a high of P58.21, with an average rate of P58.07 for the day.
- Opening Rate: The peso started strongly at P58.18, improving from Wednesday’s opening of P58.49.
- Trade Volume: Volume dipped slightly to $1.61 billion, down from $1.72 billion in the prior session.
According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, the peso’s recovery was driven by the seasonal uptick in overseas Filipino worker (OFW) remittances and their conversion to pesos, fueling holiday-related spending.
Ricafort added, “The peso exchange rate could range between PHP 57.75 and P58.00 levels on Friday.”
Stock market update
The Philippine Stock Exchange Index (PSEi) fell for a third consecutive day, declining by 0.58% or 39.03 points to close at 6,690.77.
The broader All Shares Index also retreated by 0.41% or 15.67 points, settling at 3,776.89.
Market highlights
- Sector Performance:
- Only Holding Firms (+0.39%) and Mining & Oil (+0.17%) sectors ended in the green.
- Declining sectors included Services (-1.86%), Property (-0.65%), Industrial (-0.60%), and Financials (-0.30%).
- Market Breadth: Decliners outpaced advancers, with 118 stocks in the red, 87 in the green, and 50 unchanged.
Philstocks Financials research manager Japhet Tantiangco noted that investor sentiment remained cautious amid the lack of fresh market catalysts. “The continued exit of foreign funds also weighed on market performance,” Tantiangco explained.
The peso’s steady improvement is expected to persist, supported by holiday remittances and reduced external pressure. However, the local stock market’s direction will hinge on new economic developments and the re-entry of foreign investors.