Yesterday, the investors’ sentiment pushed the peso and stock markets into high while the Treasury bill rates get too historic lows. Local economies got its strength and have its strong performance to have its confident back in developing the nations to solve the debt problems.
The benchmark of Philippine Stock Exchange was closed to 27.08 points or 0.5 percent higher at 5,579.42 yesterday as a new all-time high. Considering the immediate basis of investor’s confidence, the PSEi hit the records high with a total of 29 times in this year on 30 companies.
The trading was mixed in advancing stock, which is almost equaled decliner from 77 to 76 while there are 51 other issues were unchanged. The market players had anticipated a pullback in the PSEi following a very hot performance in the past week and had reached the peak index three times.
Local equity together with other stock markets in Asia is continued in cheering to a positive economic data in the US to offset the Greece’s financial crisis. As Asian stock markets had a slight gain yesterday right after the unofficial start of the holiday shopping season in the US.
The Philippine peso had its strongest close against the dollar after hitting 40.85 on March 7, 2008 and was become firmer after last Friday posted as 41.05.
The 364-day Treasury bill hit the record low of 0.549% in the auction yesterday. The government had its funds awarded the P4 billion as it was planned.
“There was positive sentiment in the global markets bolstered by confidence in the improving US economy. There was some good data coming from the US”
– Astro del Castillo, Managing Director at First Grade Finance Inc.
Analysts had forecasted good consumer spending on Black Friday after the reopening of stores in the US for the Thanksgiving holiday had usually the busiest shopping day for the world’s biggest economy for this year. It has a 9.2% from the year before and had a record of 247 million shoppers visited stores and websites between Thursday, and Sunday based on the survey.
Tonight, the optimism about the outcome of the euro zone’s finance ministers from the countries that use the currency in Euro will meet. This is an agreement for Greece to receive the next installment of its bailout loan because Athens needs the money to avoid bankruptcy. Although a local bank and trader said in a phone interview says that in general, other currencies in the region also gained today.
The inflation outlook for the lower rates fetched at the auction are still manageable based on National Treasurer. As of October, the inflation is at 3.2% within the government’s official 3% to 5% target.