Philippine Stock Exchange Index Remains Stable, Peso Ends 2023 Strong
Manila – The Philippine Stock Exchange index (PSEi) has maintained its performance within the 6,000 to 7,000 levels for the past twelve years, while the Philippine peso concluded 2023 as one of the top performing currencies in the region.
According to Philippines News Agency, Chief Economist at Rizal Commercial Banking Corp. (RCBC), the PSEi closed the final trading day of 2023 at 6,450.04, dropping 60.07 points, or 1.06 percent. Despite this decline, the index’s closing was among the highest levels for the past four and a half months. The local index ended the year slightly lower than its 2022 closing of 6,556.39 but remained generally steady since 2012.
Ricafort noted that global crude oil prices slightly eased, which could help moderate headline inflation towards the Bangko Sentral ng Pilipinas (BSP) target range of 2 to 4 percent. Luis Limlingan, Head of Sales at Regina Capital Development Corp., attributed the PSEi’s year-end decline to investors engaging in profit-taking. The index fell 1.77 percent year-to-date, despite modest gains of 3.64 percent in December.
Philstocks Financial, Inc. Assistant Research Manager Claire Alviar pointed out that the PSEi’s decline reflected a trend in most Asian markets, where investors were securing gains ahead of the long weekend. The broader All Shares index also closed in the red, with sectoral indices like Mining and Oil gaining, while Holding Firms and Property experienced losses.
Ricafort projected that in 2024, the PSEi could re-test levels around 6,700 and possibly 7,000. Meanwhile, the peso ended the year at 55.37 against the US dollar, appreciating from Thursday’s close of 55.48. The local currency has shown slight year-to-date appreciation and remains among the best performers in the ASEAN/Asia region.
Ricafort highlighted the peso’s strongest level at 54.30 on July 17 and its weakest at 56.99 on August 15 and September 6. He anticipates the US dollar-peso exchange rate could range from 54.00 to 57.00 in 2024, influenced by factors such as global crude oil prices, inflation trends, and potential central bank rate adjustments.
Friday’s trade volume increased to USD1.32 billion from USD1.03 billion on Thursday.