PSEi, peso rebound on improving global sentiment

The Philippine Stock Exchange index (PSEi) rebounded 1.30 percent to 6,238.46 on Thursday, while the peso strengthened 14.5 centavos or 0.23 percent to P61.67 per $1, as improved global risk sentiment supported local assets despite continued Middle East tensions.

The PSEi’s rebound followed Wednesday’s 1.70 percent decline, with investors returning to beaten-down equities as US Treasury yields fell after the Treasury announced plans to double purchases of longer-dated government bonds.

Trading firmed up

Trading strengthened to P8.20 billion from P5.68 billion, although foreign investors remained net sellers with P555.34 million in outflows.

All sectors gained, led by Mining & Oil, which rose 5.04 percent. International Container Terminal Services Inc. (ICT) was the top index gainer, climbing 3.28 percent to P960.50, while GT Capital Holdings Inc. (GTCAP) fell 1.99 percent, the weakest among index constituents.

The improved global backdrop extended across Asian markets, with MSCI’s Asia-Pacific ex-Japan index gaining about 2 percent and the Nikkei rising 1.4 percent. The dollar index also weakened to around 98.87, its lowest in roughly 2 and a half months, as US Treasury yields eased.

Peso recovered

The peso recovered from Wednesday’s near-P62 level, trading between P61.49 and P61.70 before closing at P61.67. Trading volume rose to about $2.115 billion from $1.888 billion. The weaker dollar and lower US yields helped support Asian currencies and the peso.

However, oil prices continued to rise amid the unresolved US-Iran conflict. Brent crude reached $92.82 per barrel, its fifth consecutive session of gains, while shipping through the Strait of Hormuz remained severely depressed. Only nine commodity vessels transited the strait on Wednesday, according to reports.