Psei, peso rally as democrats’ midterm win eases market concerns

The Philippine Stock Exchange index (PSEi) extended its gains on Thursday, 5 November, rising 1.46 percent to 5,778.14, while the peso strengthened by 56.5 centavos to close at P62.97 against the US dollar from Wednesday’s P63.535.

The broader All Shares index also advanced by 1.39 percent to 3,229.47, as investors continued to buy local equities amid improving sentiment and lower global oil prices.

This was attributed to the market’s advance partly to the decline in global oil prices and the peso’s appreciation. It also cited the US midterm election results, which gave Democrats control of Congress and raised expectations of greater scrutiny of the US administration’s policies, including its war against Iran.

Sectoral indices finished higher

Five of the six sectoral indices finished higher. Holding firms led the gains, climbing 4.14 percent, followed by mining and oil, which rose 4.06 percent. Industrial shares advanced 2.51 percent, property gained 1.99 percent, and services edged up 0.12 percent. Financials was the sole decliner, falling 1.04 percent.

Jollibee Foods Corp. was the PSEi’s strongest performer, surging 7.89 percent. SM followed with a 7.29 percent gain, while Metropolitan Bank & Trust Co. was the biggest laggard, dropping 3.17 percent. Bank of the Philippine Islands also declined 2.40 percent.

Foreign investors remained net buyers, recording P565.66 million in net inflows. Market turnover reached P5.83 billion after excluding block trades worth P344.20 million, with 650.86 million shares changing hands.

Market breadth was positive, with 122 advancers outnumbering 74 decliners, while 56 stocks were unchanged.

The PSEi’s year-to-date decline narrowed to 4.54 percent, while the All Shares index remained down 7.02 percent for the year.

In the foreign exchange market, the peso’s spot closing rate improved from P63.535 per dollar on Wednesday to P62.97. The separate FX settlement rate also strengthened, moving to P63.219 from P63.485.