THE peso and the stock market rebounded on Friday, ending the trading on a positive note following a lift from better-than-expected inflation data and as investors bucked concerns over a wider war in the Middle East.
The currency strengthened by 7.5 centavos to P56.295 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) added 79 points, or 1.07 percent, to close at 7,467.92.
The broader All Shares also rose, by 58.99 points or 1.48 percent, to 4,041.65.
The peso opened at P56.38:$1 and ranged from P56.23 to P56.4. Volume reached P1.513 billion, lower than Thursday’s P1.729 billion.
Philstocks Financial Inc. research manager Japhet Tantiangco said “the local market rose as investors cheered the decline of the Philippines’ inflation last September.”
“Inflation last month came in at 1.9 percent which was lower than August’s 3.3 percent and even the BSP’s range forecast of 2.0 – 2.8 percent,” he noted.
“This strengthened the case for the BSP to continue with their monetary policy easing.”
Regina Capital Development Corp. Managing Director Luis Limlingan also said that “investors were positively surprised by the latest CPI (consumer price index) print for September, which came in at just below 2 percent, giving the monetary authority greater control on when to relax interest rates.”
The central bank began an easing cycle in August, cutting its benchmark rate by 25 basis points. The next policy meeting will be held on October 16.
Tantiangco said that trading remained positive with net value turnover of P5.92 billion, higher than the year-to-date average of P5.20 billion.
Foreigners were net buyers with net inflows amounting to P607.93 million, he added,
All but two sector indices closed in the green with industrial up the most by 1.94 percent. Property and mining and oil fell by 1.02 percent and 0.75 percent, respectively.
Gainers outnumbered decliners, 107 to 87, while 52 stocks remained unchanged.
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