The peso and share prices rebounded yesterday after
the US Senate approved the bailout plan for the American financial
markets. The peso closed at 47 to the US dollar after hitting a high of
46.80, bucking the downtrend in the region. The total value of
transactions at the Philippine Dealing System reached $808 million.
The Philippine Stock Exchange index (PSEi) closed
1.68 percent higher or 43.24 points to 2,612.89. Gainers edged losers 55
to 27 with 49 stocks unchanged. Trading turnover reached 1.21 billion
shares worth P3.15 billion.
Most actively traded Philippine Long Distance
Telephone Co., (PLDT) was up P35 at 2,720.Alliance Global, Inc., was up
P0.45 to P3.90. Bank of the Philippine Island (BPI) was up P2.50 to
P47.50. Energy Development Corp., was up P0.05 to P4.05. Ayala Land,
Inc., was up P0.20 to P9.40.
Meanwhile Asian bond spreads tightened. Money markets
continue to reflect a severe lack of confidence even after billions of
dollars of liquidity injections by global central banks and other
measures have failed to stem panic in financial markets. The iTRAXX Asia
ex-Japan high yield index was bid at around 640 basis points (bps),
about 20 bps tighter than Tuesday.
The equivalent investment-grade index was bid at 205 basis points,
about 10-15 bps tighter than on Tuesday. Philippine’s five-year CDS
tightened by 10 basis points to 270 after the country said it may have a
budget deficit of P50 billion ($1.1 billion) this year, lower than a
target of as much as P75 billion if planned asset sales were successful.
