The peso weakened anew on Tuesday but the stock market rebounded as investors took in policy pronouncements made by President Ferdinand Marcos Jr. during his State of the Nation Address (SONA) a day earlier.
The currency closed at P58.435 against the dollar, down by five and a half centavos, while the benchmark Philippine Stock Exchange index (PSEi) added 41.07 points, or 0.61 percent, to 6,753.12.
The broader All Shares index also rose, by 38.50 points or 1.07 percent, to 3,638.48.
The peso opened trading at P58.44:$1 and ranged from P58.3 to P58.46. Volume surged to P1.154 billion from Monday’s P859 million.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened after the dollar again strengthened versus major global currencies and after Marcos had announced a ban on offshore gaming operations, which could have an impact on corporate results.
Philstocks Financial Inc. research and engagement officer Mikhail Plopenio, meanwhile, said the PSEi was boosted by Marcos’ speech, which was delivered after the markets had closed, and other positive news.
“The improvement of the country’s poverty incidence level, coming in at 15.5 percent in 2023, lower than 2021’s 18.1 percent, was cheered by many,” he added.
“The positive spillovers from Wall Street overnight amid optimism on US Q2 (second quarter) corporate results added a boost to the local bourse,” Plopenio continued.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said that the “Philippine shares followed Wall Street’s positive sentiment, with technology stocks rebounding from last week’s sell-off.”
“In the US, investors have been adjusting their assumptions now that President Joe Biden will not be seeking re-election, while local investors digested the latest SONA delivered by President Marcos,” he added.
Sector results were mostly higher, with holding firms gaining the most by 1.66 percent. Property and financials closed in the red, down by 1.62 percent and 0.17 percent, respectively.
Decliners outnumbered gainers, 93 to 66, while 74 were unchanged.
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