Peso closed higher yesterday, retreating from its lowest-on-record level of P59:$1 while share prices ended higher on bargain hunting.
The Philippine Stock Exchange index (PSEi) was up 14.79 points, a 0.25 percent hike to close at 5,847.37.
The broader all shares index was up 3.34 points or 0.11 percent to 3,152.44.
Losers edged gainers 93 to 84 with 42 stocks unchanged. Trading turnover reached P4.22 billion.
The peso closed at 58.865 to the dollar, up from 59 on Monday. It opened at 58.97, hitting a high of 58.83 and a low of 59. Trading turnover reached $642.35 million.
Claire Alviar, analyst at Philstocks Financial Inc., said the market went up on bargain hunting.
“However, market participation remains weak. This is amid heightening concerns over global growth while investors await the inflation rate in the US,” she said.
Most actively traded BDO Unibank Inc. was up P3.70 to P114.8. Ayala Corp. was down P13.5 to P596.5. SM Investments Corp. was down P1 to P759. International Container Terminal Services Inc. was up P0.50 to P178. Ayala Land Inc. was down P0.30 to P22.70. Bank of the Philippine Islands was up P0.40 to P93.35. SM Prime Holdings Inc. was down P0.15 to P31. Globe Telecom Inc. was up P6 to P2,23. Universal Robina Corp. was up P1.40 to P110.40. Jollibee Foods Corp. was P5 to P233.
Most Asian currencies weakened on Tuesday, battered by tepid risk sentiment as investors continued to exit regional bonds, while the Malaysian ringgit hit a fresh 24-year low after the country’s parliament got dissolved, Reuters reported.
The ringgit fell as much as 0.5 percent to trade at 4.670 to the dollar, its lowest since January 1998. Stocks in Malaysia dropped as much as 1.6 percent to their weakest levels since May 2020, and bond yields rose 2 basis points to 4.404 percent.
Malaysian Prime Minister Ismail Sabri Yaakob on Monday announced the dissolution of parliament, paving the way for an early election, aiming to win a stronger public mandate and quell infighting in his coalition.
“A strong mandate would be helpful, but the MYR will ultimately depend on the priorities of the new government,” said Wei-Liang Chang, an FX and credit strategist at DBS.
“Markets will want to see increased fiscal consolidation, more pro-growth policies, on top of a greater openness to trade and investment.”
The polls are expected to be held within 60 days of parliament dissolution.
Yields in Indonesia rose for a fourth consecutive session, up 3.2 basis points to 7.310 percent, with the currency down 0.3 percent.
“As yield differentials between Asian bonds and (US Treasuries) have been compressed, there have been outflows from some Asian bond markets, which added to the weakness of their respective currencies,” said Frances Cheung, a rates strategist at OCBC Bank.
The Thai baht and Singapore dollar weakened 0.6 percent and 0.2 percent, respectively.
Major central banks have been tightening their monetary policies at the fastest pace in several decades, and many traders fear this may end culminate in a global recession.
Markets also await US inflation data due late on Thursday. Analysts expect headline inflation to have pulled back slightly in September.
Korean markets resumed trade after a holiday-extended weekend and caught up on Monday’s regional sell-off, with the won weakening 1.5 percent. The Bank of Korea is expected to raise rates by 50 bps on Wednesday.
US stocks fell on Monday, with negative sentiment broadly tied to chipmakers and global slowdown concerns. – Ruelle Albert Castro, Reuters
