Stocks recover; peso extends losses

The Philippine Stock Exchange Index (PSEi) rebounded on Tuesday, closing at 6,126.22, up 91.20 points, or 1.51 percent, while the peso continued to weaken, slipping to P61.35 per US dollar.

Investors returned to the equity market following the benchmark’s two-day slump, hunting for bargains while monitoring developments in the Middle East and their potential impact on the local economy.

With no major escalation in the Gulf following Monday’s strikes, many market participants remained on the sidelines.

Value turnover reached P5.97 billion, below the year-to-date average of about P6.48 billion. Foreign investors, however, turned net buyers, posting net inflows of P262.47 million after substantial outflows in the previous session.

Broadly positive performance

Sector performance was broadly positive, led by Services, which gained 3.53 percent as investors bought back logistics, telecommunications, and gaming stocks. Mining & Oil was the lone decliner, slipping 0.83 percent amid profit-taking in commodity-related counters.

International Container Terminal Services Inc. emerged as the biggest contributor to the index’s advance, rising 5.05 percent to P905.00, while Semirara Mining & Power Corp. was the main drag, falling 3.59 percent to P24.15.

In the foreign exchange market, the peso weakened further against the US dollar. According to Bankers Association of the Philippines data, the currency closed at P61.351 per dollar, compared with P61.123 on Monday, representing a depreciation of 22.8 centavos, or 0.37 percent.

The peso traded within a range of P61.16 to P61.48, while total spot-market volume reached approximately US$2.31 billion. The weighted average rate rose to P61.355 from P60.988 previously, highlighting persistent demand for dollars throughout the session.