PSEI rebounds as u.s. election results lift sentiment

The Philippine Stock Exchange index (PSEi) recovered 1.26 percent to 5,694.92 on Wednesday, 4 November, while the peso weakened by 6.5 centavos to close at P63.535 against the US dollar from Tuesday’s P63.47, as investors returned to the equities market to hunt for bargains following the previous session’s decline.

The local market’s recovery came as investors assessed the results of the US midterm elections, where Democrats secured control of both the House of Representatives and the Senate.

Greater congressional scrutiny of Trump’s Iran policy

The outcome raised expectations of greater congressional scrutiny of the Trump administration, including its policies toward Iran.

The broader All Shares index advanced 0.80 percent to 3,185.15. Financial stocks led the sectoral rally, climbing 3.82 percent, followed by services, which gained 1.79 percent. Mining and oil rose 0.91 percen, while industrials added 0.33 percent. Property and holding firms were the only sectors to decline, shedding 0.25 percent and 1.07 percen, respectively.

Bank of the Philippine Islands led the PSEi gainers, surging 7.93 percent, followed by Universal Robina Corp. at 4.91 percent and Metropolitan Bank & Trust Co. at 4.39 percent. DigiPlus Interactive Corp. was the biggest index decliner, falling 7.29 percent, followed by DMCI Holdings Inc., which lost 3.06 percent.

Foreign investors-backed market recovery

Foreign investors supported the market’s recovery, recording net inflows of P483.93 million. However, trading remained relatively subdued, with net value turnover reaching P6.15 billion. Total trading volume stood at 663.85 million shares, while market breadth was nearly balanced, with 97 decliners against 94 advancers and 61 unchanged issues.

The peso’s depreciation came despite the recovery in local equities. The currency’s closing rate of P63.535 was slightly weaker than Tuesday’s P63.47, although its BSP weighted average settlement rate was marginally lower at P63.488 compared with P63.491 previously.