The Philippine Stock Exchange Index (PSEi) snapped a three-day losing streak on Monday, rising 0.53 percent to 5,799.32, even as the peso weakened sharply to P61.74 per US dollar from P61.59 previously, as equities rallied on improving economic data and oversold conditions while currency markets remained dominated by global risk sentiment.

Investors returned to selectively buy beaten-down stocks following last week’s sharp market decline. Sentiment was further supported by an improvement in domestic manufacturing activity, with the S&P Global Philippines Manufacturing PMI rising to 50.8 in May from 48.3 in April, signaling a return to expansion and easing concerns over weakening economic growth.

Trading relatively active

Trading was relatively active, with value turnover reaching P7.14 billion, above the year-to-date average. Foreign investors, however, remained net sellers, posting P1.13 billion in net outflows.

Sector performance was mixed. Services led the advance, rising 2.47 percent on the back of gains in International Container Terminal Services Inc. (ICTSI), which climbed 3.65 percent to P780 per share. Mining and Oil was the biggest laggard, falling 0.97 percent as commodity-related stocks surrendered some of their recent gains. Converge ICT Solutions Inc. (CNVRG) was the session’s worst performer, declining 6.55 percent to P10.28.

While equity investors focused on improving domestic economic indicators, currency traders remained more concerned about geopolitical risks and the inflationary implications of higher oil prices.

Peso sharply weakened

The peso weakened sharply, closing at P61.746 per US dollar from P61.59 on Friday, moving dangerously close to the record low of P61.75 posted on 18 May.