MANILA – Risk aversion remained in the local financial market due to the coronavirus disease 2019 (Covid-19) Wednesday, but both the Philippine Stock Exchange index (PSEi) and the peso managed to stay afloat.
The local currency ended the day’s trade at 50.55 from 50.5 in the previous session.
The BPI Research attributed this to “lack of new developments that could cause a significant movement.”
It opened the day at 50.5 and traded between 50.56 and 50.465. Average for the day stood at 50.507.
Volume totaled to USD934 million, higher than the USD879 million in the previous trading day.
The peso is seen to trade between 50.45 and 50.70 on Thursday.
The main equities index rose for the second consecutive day after it gained 0.55 percent, or 34.88 points, to 6,353.26 points.
BPI Research said the local bourse’s main index opened the day up by almost 1.5 percent but slid in the afternoon trading due to news of additional Covid-19 cases both in the US and Europe.
It said as a result of the rising Covid-19 cases in the US, President Donald Trump suggested a payroll tax reduction to address the virus’ impact on the world’s largest economy, but this was countered by ranking Democratic Party executives, citing this is not the right solution.
In Europe, the Bank of England slashed policy rate by 50 basis points from 0.75 percent to 0.25 percent.
This comes after the similar emergency rate cut implemented by the Federal Reserve on the Fed funds rate last March 3 to a range between 1 percent to 1.25 percent.
With these developments, All Shares mirrored the main gauge after it ended the day at 3,808.73 points, up 0.53 percent or 20.21 points.
It was, however, a mix among the sectors but most increased during the day.
Industrial registered the highest uptick at 2.27 percent, and was followed by the Holding Firms, 1.08 percent; Services, 0.29 percent; and Property, 0.19 percent.
Mining and Oil fell 1.52 percent and Financials, 0.99 percent.
Volume totaled to 687.6 million shares amounting to PHP6.6 billion.
Gainers surpassed losers at 107 to 84, while 48 shares were unchanged. (PNA)