THE peso continued to gain against the dollar for a sixth straight trading day on Wednesday, and the stock market also rebounded from Monday’s crash by rising back to the 6,500 level.
The currency strengthened by 29-and-a-half centavos to P57.515:$1, its strongest close since May 16’s P57.465, while the benchmark Philippine Stock Exchange index (PSEI) gained 101.93 points, or 1.58 percent, to 6,535.17.
It had plunged to 6,434.73 on Monday, from 6,605.30 at the end of last week, as global stock markets were hammered by fears of a recession in the United States.
The broader All Shares, meanwhile, also rose, by 43 points or 1.22 percent, to 3,563.94.
The peso opened trading at P57.7:$1 and ranged from P57.495 to P57.85. Volume rose to P1.756 billion from Tuesday’s P1.214 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said news that the country’s reserves had risen in June, along with the stock market’s rally, had boosted the peso.
Philstocks Financial Inc. research and engagement officer Mikhail Plopenio, meanwhile, said the PSEi gained “as investors hunted for bargains after a three-day decline.”
“Along with our regional peers, the bourse tracked Wall Street’s rebound overnight. Also, the strengthening of the local currency against the US dollar boosted sentiment,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan said “Philippine shares made a furious comeback” and added that investors were starting to “make bets” ahead of today’s release of second-quarter economic growth data.
“Wall Street snapped its three-day losing streak as investors took a break from recession fears, buoyed by a rally in Japanese equities,” Limlingan noted.
Still, he said “investors remain cautious amid concerns about elevated interest rates following a rise in July’s inflation.”
All sector indices closed in the green, led by property that climbed by 3.25 percent.
Gainers slightly outnumbered decliners, 98 to 81, while 54 were unchanged.
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