Week’s trading session opens with strengthened stocks, peso
The local bourse advanced for a second consecutive session, rising 42.19 points to 5,743.18 even as the peso strengthened modestly, to close at P62.760, from P62.801 against the US dollar last Friday. Global markets continue to face mixed signals as investors monitored geopolitical developments in the Middle East and awaited US inflation data due Wednesday.
The Philippine Stock Exchange Index (PSEi) rose 42.19 points, or 0.74 percent, to 5,743.18 on Monday, while the peso strengthened 4.1 centavos, or 0.07 percent, to P62.760 per US dollar from Friday’s P62.801 close, as bargain hunting extended the local market’s recovery despite weak trading activity and continued foreign selling.
The local bourse advanced for a second consecutive session as investors picked up shares following last week’s steep losses. However, turnover remained modest, suggesting that investors were still cautious amid concerns over higher borrowing costs, persistent inflation and the economic impact of elevated energy prices.
Mixed signals
Global markets faced mixed signals as investors monitored geopolitical developments in the Middle East and awaited US inflation data due Wednesday. The dollar remained near an 18-month high amid regional tensions and uncertainty over the Federal Reserve’s next policy moves. Brent crude remained above $100 a barrel despite easing from recent levels, keeping energy-related inflation risks in focus.
The Philippine market’s recovery was uneven across sectors. Services led the gainers, advancing 1.97 percent, while Financials was the weakest sector, falling 1.07 percent. Turnover reached P5.78 billion, while foreign investors remained net sellers with P332.60 million in outflows.
AEV top index gainer
Aboitiz Equity Ventures Inc. was the day’s top index gainer, climbing 4.62 percent to P40.80. DigiPlus Interactive Corp. was the biggest laggard, plunging 9.38 percent to P7.44.
The peso strengthened modestly after weakening to P62.801 on Friday. It opened at P62.65 and traded between P62.65 and P62.80 before closing at P62.760. The BAP AM weighted average was P62.718, while the PM weighted average rose to P62.756, indicating that the peso surrendered some of its morning strength during afternoon trading.
The full-day BAP weighted average stood at P62.739, while the FX settlement rate was P62.718. Total spot-market volume declined to $1.0559 billion from $1.3931 billion on Friday. AM volume reached $469.2 million, while PM volume stood at $586.7 million.
Peso gains despite US dollar’s strength in global markets
The peso’s gain came despite the dollar’s continued strength in global markets. Elevated oil prices and geopolitical uncertainty remain risks for the Philippines, a net energy importer, while the September inflation rate of 7.2 percent has increased expectations of further monetary tightening by the Bangko Sentral ng Pilipinas.