Market recovers, peso firms up

MANILA, Philippines — The stock market bounced back after a sluggish week-opener as investors sought inspiration from positive first half earnings results, while the peso continued to gain against the dollar.

The benchmark Philippine Stock Exchange index gained 0.56 percent or 37.08 points to finish yesterday’s session at 6,650.44.

Also closing in the green was the broader All Shares index, which added 0.32 percent or 11.46 points, settling at 3,610.

Philstocks Financial research manager Japhet Tantiangco said investors’ appreciation of the first half corporate results helped in bringing the market up.

“Philippine shares rebounded, tracking the Asian peers, as investors continue to take positions ahead of the upcoming Bangko Sentral ng Pilipinas meeting this Thursday. Meanwhile, Wall Street opened the week with choppy trading as investors awaited key inflation reports that could provide direction after last week’s volatility,” Regina Capital’s Luis Limlingan said separately.

Net value turnover improved to P4.9 billion from Monday’s P3.52 billion.

Mining and oil index and financials were the only two counters that ended in the red territory, dropping by 1.09 percent and 0.18 percent, respectively.

Property index, meanwhile, led those in the green with a 1.69-percent surge.

Market breadth, however, remained negative as decliners crushed advancers, 100 to 81, while 64 issues were unchanged.

Meanwhile, the peso appreciated further by 35.6 centavos to close at 56.96 to $1 yesterday from Monday’s 57.316. This marks the strongest level of the local currency in almost four months or since the 56.808 close on April 15.

RCBC chief economist Michael Ricafort said the peso strengthened “amid reduced likelihood of a 25-basis-point rate cut” from the BSP on Thursday, as signaled by monetary officials.