Stocks rise for fourth day as peso firms
THE Philippine Stock Exchange Index has been experiencing significant volatility and downward pressure due to the unresolved crisis in the Middle East.
Photograph courtesy of PSEI
Daily TribuneTHE Philippine Stock Exchange Index has been experiencing significant volatility and downward pressure due to the unresolved crisis in the Middle East.
Photograph courtesy of PSEI
The Philippine Stock Exchange Index (PSEi) rose 22.65 points, or 0.36 percent, to close at 6,325.15 on Thursday, while the peso strengthened by 6.6 centavos to P61.62 per US dollar from Wednesday’s P61.686 finish, as investors continued to respond positively to signs of easing inflation in the United States and the prospect of a less restrictive monetary policy environment.
The local bourse extended its advance for a fourth consecutive session, supported by expectations that the US Federal Reserve may have greater flexibility to ease interest rates in the coming months following softer-than-expected June US inflation readings.
Trading relatively subdued
Despite the market’s gains, trading activity remained relatively subdued, with net value turnover reaching P4.71 billion, below the year-to-date average of P6.30 billion, suggesting that many investors remained cautious amid lingering global uncertainties.
Foreign investors continued to provide support to the market, posting net inflows of P195.39 million and extending the recent streak of foreign buying. Sector performance was mixed, with Mining and Oil leading the gains, rising 2.90 percent, while Services was the lone laggard, declining 0.23 percent.
PLDT performed strongest
Among index constituents, PLDT Inc. emerged as the day’s strongest performer, climbing 3.86 percent to P1,238.00, while Semirara Mining and Power Corp. recorded the steepest decline, falling 3.83 percent to P20.10.
In the foreign exchange market, the peso also posted gains against the US dollar. Based on data from the Bankers Association of the Philippines, the local currency closed at P61.62 per dollar, appreciating from P61.686 in the previous session.
The peso traded within a relatively narrow range of P61.60 to P61.70 during the day, while the weighted average rate settled at P61.644.
Total dollar-peso transaction volume increased to US$1.293 billion from US$1.146 billion previously, indicating stronger participation in the foreign exchange market.
Peso appreciation
The peso’s appreciation was largely driven by a softer US dollar following weaker-than-expected US inflation-related data.