The peso regained more ground on Wednesday and the stock market also snapped a three-day decline as investor sentiment improved.
The currency strengthened by four and a half centavos to P58.575 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) added 30.79 points, or 0.49 percent, to close at 6,330.46.
The broader All Shares, however, dropped 9.06 points, or 0.25 percent, to 3,678.80.
The peso opened at P58.65:$1 and ranged from P58.575 to P58.7. Volume reached P1.372 billion, down from Tuesday’s P1.423 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso strengthened due to sustained growth in overseas Filipino worker remittances and a slight improvement in the non-performing loan ratio of local banks.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “investors hunted for bargains following three straight days of decline.”
“Helping in the market’s rise was Fitch Solutions’ BMI’s 6.3-percent economic growth projection for the Philippines this 2025,” he added.
“Also aiding was the record new vehicle sales in the Philippines in 2024 … which somehow reflects strong spending in the country.”
Still, Tantiangco said the day’s trading was “tepid” with net value turnover at P4.5 billion.
“Foreigners were net sellers with net outflows at P540.58 million,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “Philippines shares rebounded above 6,300 levels, following the slight recovery in the global market.”
DragonFi Securities, Inc. equity research analyst Jarrod Tin said the PSEi’s rise was “mainly driven by bargain hunting in oversold property heavyweights ALI (Ayala Land, Inc.) and SMPH (SM Prime Holdings, Inc.).”
“Despite the uptick, broader market sentiment remained subdued, with muted trading volumes reflecting investor caution ahead of the release of US CPI (consumer price index) data on [Wednesday US time],” he added.
Sector results were mixed, with the property index the biggest gainer, up 2.03 percent, while holding firms fell the most by 0.50 percent.
On a company basis, decliners outnumbered gainers, 100 to 88, while 44 were unchanged.
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