THE peso and the stock market started the week strong, buoyed by the latest remittance data and expectations of a US Federal Reserve rate cut.
The currency strengthened by 10 centavos to P55.888 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) added 81.35 points, or 1.16 percent, to end Monday at 7,104.20.
It was the highest close in over two years, or since April 20, 2022’s 7,142.42.
The broader All Shares index also gained, rising by 31.37 points, or 0.83 percent, to 3,820.00.
The peso opened at the day’s high of P55.94:$1 and traded as low as P55.83 to P55.94. Volume reached P1.2 billion, down from Friday’s P1.497 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said news that overseas Filipino worker remittances hit a 7-month high in July had lifted the peso.
The dollar’s having corrected lower against major global currencies also contributed, he added.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco, meanwhile, said “optimism towards a possible rate cut by the Federal Reserve in their meeting this week drove the local bourse higher.”
“The local currency which exhibited strength against the US dollar in today’s trading also contributed to the market’s climb,” he continued.
Regina Capital Development Corp. Managing Director Luis Limlingan said “Philippine shares started the week positively, buoyed by the World Bank’s forecast of a 5.8 percent GDP (gross domestic product) growth for 2024, driven by lower interest rates boosting domestic consumption.”
“In the US, key data releases include Tuesday’s retail sales report and Thursday’s Philadelphia Fed Manufacturing Index,” he said.
“Attention is also on the September FOMC (Federal Open Market Committee) meeting [on Wednesday], with the statement at 2:00 p.m. ET (2:00 a.m. in Manila) and [Fed] Chair [Jerome] Powell’s press conference at 2:30 PM ET (2:30 a.m. in Manila).”
All sector indices closed in the green, with mining and oil up the most by 1.59 percent.
Gainers outnumbered decliners, 115 to 85, while 53 listed firms were unchanged.
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