Stocks bounce back on midday Wednesday; peso still under P58

The Philippine Stock Exchange Index (PSEi) edged higher at the Wednesday halftime break, rising 0.13% to 6,376.64, up 8.09 points, as selective buying in services and property stocks offset weakness in cyclicals. 

The broader All Shares index also gained 0.13% to 3,531.90. Sectoral performance has been mixed so far. Services led, climbing 1.31%, followed by Property (+0.40%), while Industrials (-0.69%), Holding Firms (-0.36%), and Mining & Oil (-0.30%) weighed on the index. Financials were marginally lower, slipping 0.09%. Market breadth was slightly negative with 87 advancers versus 94 decliners, while 60 issues were unchanged.

Trading remained relatively light ahead of potential catalysts, such as the Bangko Sentral ng Pilipinas upcoming monetary policy meeting tomorrow afternoon, with total value turnover at P2.32 billion across 46,681 trades and volume reaching 296.5 million shares. 

Among actively traded names, DigiPlus Interactive Corp. (PLUS) surged 4.65%, while International Container Terminal Services (ICT) gained 1.59%. On the downside, Semirara Mining and Power Corp. (SCC) extended losses following the Department of Energy’s refusal to extend its lease on the eponymous island’s coal contract, plunging 15.33%. DMCI Holdings (DMC) also fell 10.33%, keeping pressure on the Mining & Oil space despite gains in select index heavyweights like MER and MBT.

Meanwhile, the peso strengthened further to P57.88 per US dollar, extending its recent appreciation streak. The move reflects continued softness in the US dollar amid easing Treasury yields and improving risk appetite in Asian markets.

 Regional currencies have firmed as investors reassess expectations for US monetary tightening following softer economic data prints, while steady foreign exchange inflows into emerging markets have also supported the peso. 

The currency’s appreciation may help temper imported inflation pressures and provide a modest tailwind to domestically oriented sectors, though exporters and dollar earners could face near-term translation headwinds.