Stocks, peso gain as MidEast tensions cool
PHOTO courtesy of PNA
Daily TribunePHOTO courtesy of PNA
The Philippine Stock Exchange Index (PSEi) rebounded on Tuesday, gaining 66.30 points or 1.13 percent to close at 5,945.71, recovering much of Monday’s decline, while the peso likewise strengthened to closed at P61.545 per US dollar from P61.69 previously as easing tensions in the Middle East improved investor sentiment.
Markets welcomed reports that Iran had halted further military strikes against Israel, easing concerns over a broader regional conflict and helping global oil prices retreat by about 2 percent.
Timid trading activity
Despite the rebound, trading activity remained timid, with value turnover reaching P5.53 billion. Foreign investors likewise remained cautious, posting net outflows of P155.98 million. Sector performance was mixed but generally positive.
Sectorally, Holding Firms led the advance, rising 2.09 percent on gains from major conglomerates, including SM Investments Corp. and Ayala Corp. Mining & Oil was the weakest sector, falling 1.51 percent as softer crude oil prices weighed on energy-related counters.
Among index constituents, DigiPlus Interactive Corp. (PLUS) emerged as the top performer, climbing 6.43 percent to P10.60, while Ayala Land Inc. was the session’s biggest loser, declining 2.35 percent to P13.28.
Peso strengthens sharply vs US dollar
Meanwhile, the peso strengthened sharply against the US dollar. Data from the Bankers Association of the Philippines (BAP) showed the currency closed at P61.545 per dollar, appreciating by 14.5 centavos from Monday’s P61.69 finish.
The peso traded within a range of P61.53 to P61.70 during the session, while the afternoon weighted average settled at P61.571. The BAP weighted average improved to P61.611 from P61.668 previously, indicating broad-based strength throughout the trading day.
The local currency benefited from reduced safe-haven demand for the US dollar after tensions in the Middle East eased. At the same time, lower oil prices improved sentiment toward oil-importing economies such as the Philippines by reducing concerns over import costs and inflation.