Share prices edged up Monday on bargain hunting while the local currency closed lower, echoing other currencies in the region.
The Philippine Stock Exhange index (PSEi) gained 56.94 points to close at 6,507.78. The broader All Shares index also closed higher by 26.31 points to 3,473.92.
Gainers edged losers, 97 to 82, with 51 stocks unchanged.
The peso closed at 56.02 to the dollar, down from Friday’s 55.74. The currency opened at 55.65, hitting a high of 55.60 and a low of 56.06. Trading turnover reached $973.75 million.
Asian currencies traded cautiously on Monday ahead of US and China inflation data, while second-quarter economic growth in Indonesia advanced unexpectedly and inflation eased slightly in Thailand, Reuters reported.
Indonesia’s rupiah weakened 0.1 percent as economic growth accelerated unexpectedly to its highest rate in three quarters.
“Despite well-behaved inflation and robust growth, we continue to expect Bank Indonesia to keep the policy rate on hold until the end of the year given policymakers’ focus on IDR stability,” analysts at Goldman Sachs said in a note.
Frakhrul Fulvian, an economist at Trimegah Securities, added that a higher gross domestic product growth increases market perception that import growth will likely gain pace going ahead.
Claire Alviar, analyst at Philstocks Financial Inc., said investors opted to bargain hunt after the market’s steep decline last week.
“However, the market’s rally was weak, as investors remained cautious particularly with the mounting upward risks to the inflation rate in the country. Investors were also waiting for the country’s economic growth in the second quarter,” she said.
Most actively traded BDO Unibank Inc. was steady at P141. SM Prime Holdings Inc. was down P0.75 to P33.25. SM Investments Corp. was down P7 to P901.50. International Container Terminal Services Inc. was up P6 to P208. Ayala Land Inc. was up P0.30 to P28.70. Universal Robina Corp. was up P3.60 to P124.40. Ayala Corp. was up P17 to P624.
Bank of the Philippine Islands was down P0.60 to P116.40. Aboitiz Equity Ventures Inc. was up P0.85 to P50.60. ACEN Corp. was down P0.08 to P5.42.
Meanwhile, inflation in Thailand came in below the central bank’s target of 1 percent to 3 percent for a third successive month. The Thai baht slipped 0.2 percent.
The inflation data comes against the backdrop of growing political uncertainty in Southeast Asia’s second-largest economy since its May 14 election, with the country’s former Prime Minister Thaksin Shinawatra postponing his return from self-exile as the region struggles to overcome a political deadlock.
“Still benign inflation should keep the Bank of Thailand in a wait-and-see mode,” said Poon Panichpibool, markets strategist at Krung Thai Bank.
“In the near term, I dont think the Thai baht could regain more strength easily even with some weakness in the dollar due to political uncertainty, but if it’s clear that the coalition government will be formed eventually, I think foreign investors will be happy to buy Thai assets on dips, especially stocks and bonds, due to somewhat attractive valuations and upside potential,” he added.
Among other currencies, the Singapore dollar depreciated 0.2 percent.
Investors are eyeing US and Chinese inflation figures due later this week, with hopes of more policy easing aiding a weak post-pandemic recovery in China.
The Chinese yuan weakened 0.3 percent and is among the worst performing currencies in the region this year.
Exports in the world’s second-largest economy are likely to contract further in July, as manufacturers struggled for buyers in markets grappling with high inflation and rising interest rates, according to a Reuters poll. – Ruelle Castro
