Peso eases from record low as stocks soar

The Philippine Stock Exchange Index (PSEi) rose 119.53 points, or 2.11 percent, to 5,782.70 on Friday, while the peso strengthened 7.5 centavos to P62.985 per US dollar from Thursday’s close of P63.06, as easing global bond yields and a pullback in oil prices supported local equities and helped the currency recover some ground.

The local market extended its rebound as investors continued bargain-hunting after recent declines. Lower global oil prices and US Treasury yields eased some pressure on Philippine assets, although concerns over inflation and the country’s economic growth outlook persisted.

Relatively light trading

Trading was relatively light, with turnover at P5.26 billion. Foreign investors were net buyers, recording P148.21 million in inflows.

Most sectors advanced, led by Services, which climbed 4.09 percent. Conglomerates was the only decliner, slipping 0.12 percent. RL Commercial REIT Inc. surged 9.05 percent to P6.75, making it the day’s top index gainer, while DMCI Holdings Inc. fell 1.36 percent to P7.27, the steepest decline among index constituents.

The peso’s recovery followed Thursday’s close above the P63-per-dollar level. The currency opened at P63.03 and traded between P62.97 and P63.23 before ending at P62.985.

The Bankers Association of the Philippines’ morning weighted average was P63.094, while the afternoon weighted average improved to P63.025, indicating that the peso regained ground in the second half of the session. The full-day weighted average was P63.068, and the foreign exchange settlement rate stood at P63.094.

Despite the stronger closing rate, the full-day weighted average edged up from P63.049 on Thursday to P63.068, suggesting that transactions over the session reflected a slightly weaker peso overall.