Philippine markets mixed on first trading day of 2023

Philippine markets were mixed on Tuesday, the first trading day of the year, with the local stock barometer posting gains while the peso depreciated against its US counterpart.

The Philippine Stock Exchange index (PSEi) gained 19.62 points or 0.30% to 6,586.01 at the closing bell, while the broader All Shares increased by 14.66 points or 0.42% to 3,476.70.

“Philippine shares started the year on a high note, brushing off the spectres of 2022 to make way for the year ahead,” Luis Limlingan, head of sales at Regina Capital Development Corp., said in a mobile message.

Limlingan said the market also awaits economic data set to be released in the first week of the year, including the latest employment figures of the United States and the minutes of the Federal Open Market Committee meeting.

Locally, the Philippine Statistics Authority (PSA) is scheduled to release December inflation data on Thursday, January 5, and employment and manufacturing data on Friday, January 6.

More than 2.059 billion shares, valued at P3.427 billion, changed hands. Advancers trumped decliners, 94 to 89, while 50 issues were unchanged.

Meanwhile, the Philippine peso shed 3.5 centavos to close Tuesday at P55.79:$1 versus Monday’s finish of P55.755:$1, following the release of mostly softer-than-expected economic data in the US.

Among the recently released data are four-month high initial jobless claims, 11-month highs in continuing claims, and PMIs still among the worst in over two years.

“Still relatively weaker peso in recent months could still increase the possibility of further local policy rate hike/s and possibly matching future Fed rate hikes if inflation remains high,” Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in an emailed commentary.

Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla last month said the Monetary Board is set to continue hiking key policy rates by at least 25 basis points in its first two meetings in 2023.

Medalla also said that the “worst is over for the strong dollar,” with inflation expected to start decelerating by January 2023. — RSJ, GMA Integrated News