THE peso started the week stronger, buoyed by news that the country’s foreign reserves had hit a 16-month high, but the stock market closed lower as traders chose to take profits as they awaited corporate earnings results and next week’s central bank policy meeting.
The currency closed at P58.455 to the dollar, up by 13 centavos, while the benchmark Philippine Stock Exchange index (PSEi) shed 41.75 points, or 0.65 percent, to end the day at 6,349.16. The broader All Shares also fell, by 22.096 points or 0.64 percent, to 3,561.47.
The peso opened at P58.5 to the dollar and traded from P58.38 to P58.55 during the session. Volume dropped to $1.080 billion from $1.624 billion previously.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened after gross international reserves (GIR) were reported to have hit $112.51 billion at the end of January, the highest since the record $112.71 billion seen in September 2024.
The latest level — described by the Bangko Sentral ng Pilipinas (BSP) as a “robust external liquidity buffer” that was enough for 7.5 months’ worth of imports — has given monetary authorities more leeway to defend the peso, which hit several record lows last month.
The PSEi’s fall, meanwhile, was attributed by Philstocks Financial Inc. research manager Japhet Tantiangco to “last-minute profit taking and a cautious stance ahead of upcoming corporate earnings.”
Despite the dip, RCBC chief economist Michael Ricafort said the benchmark index remained resilient, trading above the 6,000 level for nearly two months following last year’s losses.
“The PSEi continues to show strength, with near-term support seen at 6,145-6,280 and potential resistance at 6,400-6,500,” he said.
Investors were said to be eyeing a possible 25-basis point rate cut by the BSP next week, which analysts said had helped support the peso.
Global developments, including lower crude oil prices, record highs on Wall Street and easing geopolitical risks following US-Iran and US-China talk, were also said to have helped shape trading sentiment.
