Peso breaches P57:$1 mark, lifting stocks

Manila, Philippines – The Philippine Stock Exchange index (PSEi) extended its rally for a third session, thanks to a rebound in the local currency against the dollar, an analyst said.

After weeks of heavy beating from the corruption scandal that unnerved investors, the peso breached the P57-per-dollar mark to strengthen to as much as P57.985 in intraday trade. But that renewed strength faded during late deals so the exchange rate settled at P58.055 per greenback.

The main index added 0.29 percent to end Wednesday’s trade at 6,094.10.

“The PSEi extended its gains in today’s session as market sentiment turned positive, supported by the PHP holding its ground against the greenback, nearing the 57 mark,” brokerage firm Regina Capital said in a note to investors.

Falling bond yields and the hunt for cheap stocks had lifted the PSEi in the past sessions, enough to keep it away from the wobbly 6,000 support.

“Bargain hunting continued to be one of the key drivers of trading activity throughout the week,” the broker said.

Overnight, Wall Street closed mixed on Tuesday as investors weighed US President Donald Trump’s latest tit for tat remarks against China concerning trade policy.

Losers still outnumbered gainers 107 to 95 in a rather brisk trade where P7.6 billion worth of shares changed hands.

NewsWatch Plus business news anchor Lois Calderon contributed to this story.