Daily TribuneMarket rally was sustained driven largely by ICTSI which surged 5.42 percent to P875.00, lifting the Services sector by 3.74 percent but the peso weakened to P61.745 per dollar from P61.675 previously as the US dollar renewed strength.
The Philippine Stock Exchange Index (PSEi) extended its rally on Wednesday, rising 0.68 percent to 5,953.17, while the peso weakened to P61.745 per US dollar, matching Monday’s close and depreciating from Tuesday’s P61.675 finish.
Investors continued bargain hunting, pushing the benchmark index closer to the 6,000 level after last week’s extended slump left many stocks trading at relatively attractive valuations.
Trading remained active, with value turnover reaching P8.03 billion, while foreign investors posted net inflows of P53.01 million, marking a second consecutive day of net buying.
Gains concentrated in a few heavyweight stocks
Despite the index gain, market breadth remained weak, with 75 advancers against 103 decliners, indicating that gains were concentrated in a handful of heavyweight stocks rather than broadly distributed across the market.
The local bourse’s rally was largely driven by International Container Terminal Services Inc., which surged 5.42 percent to P875.00, lifting the Services sector by 3.74 percent. The sector bucked the broader market trend, with all other sectoral indices finishing in negative territory.
Metropolitan Bank & Trust Co. was the biggest laggard among index constituents, declining 2.70 percent to P63.00 per share.
Peso weakens
Meanwhile, the peso weakened to P61.745 per dollar from P61.675 previously, a decline of seven centavos, or 0.11 percent. The currency was already under pressure early in the session, with its Bankers Association of the Philippines weighted average at P61.702, weaker than the previous day’s close.
The move reflected renewed strength in the US dollar as global investors scaled back expectations for near-term Federal Reserve rate cuts following resilient US economic data and firmer Treasury yields.
Oil prices also climbed, with Brent crude rising to US$96.81 per barrel and West Texas Intermediate advancing to US$94.67, both reaching one-week highs after earlier gains.
The increase added support for the dollar as the US and Iran remain unable to reach a peace agreement.
Risk sentiment also remained cautious amid lingering geopolitical uncertainty in the Middle East, boosting demand for traditional safe-haven assets such as the US dollar.
