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PSEi up, PHP down on disappointing Aussie GDP report

MANILA, Dec 7 (PNA) -- While the Philippine Stock Exchange index(PSEi) exhibited strength on Wednesday, the Philippine peso fell against the US dollar as most Asian currencies weakened due to contraction of the Australian economy.

The local currency lost Php0.16 and finished the day at 49.75 from 49.59 Tuesday.

”It was in line with regional weakness because of disappointing growth report from Australia,” a trader said.

Australia’s economy shrank 0.5 percent to 1.8 percent in the third quarter this year, due in part to decline in public capital spending, private building investment and net exports.

The trader said higher fixing for the Chinese currency, renminbi, also resulted in the depreciation of Asian currencies during the day.

Impact of anticipations for a hike in the Federal Reserve rates this month have been priced-in, the trader said, but pointed out that “the market has a manner of ‘sell on rally, buy on fact”, thus, the volatility.

“Emerging market currencies are expected to weaken until the Fed delivers a rate hike. After the rate hike the peso may take a breather,” the trader said.

For the day, the peso opened at 49.63, little changed from the 49.60 a day ago.

It traded between its opening level and 49.76, bringing the day’s average to 49.70.

Volume of trade reached USD351.3 million, higher than the USD400.8 million a day ago.

The trader expects the peso to trade between 49.55 and 49.85 Thursday.

On the other hand, the PSEi gained 0.89 percent, or 60.67 points, to 6,866.81 points.

The All Shares also rose by 0.88 percent, or 36.32 points, to 4,153.06 points.

Most of the sectoral indices increased except for the Mining and Oil, which fell 0.23 percent.

The gainers were led by the Financials, with a 1.26 percent climb, followed by the Holding Firms, 1.06 points; Property, 0.78 percent; Services, 0.78 percent; and Industrial, 0.31 percent.

Volume of trade totaled to 1.1 billion shares amounting to Php 4.98 billion.

There was a close fight between the decliners and advancers at 89 to 88 while 47 stocks were unchanged. (PNA)

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