Share prices ended higher yesterday as investors bet on the further deceleration of inflation and better employment numbers.
The Philippine Stock Exchange index was up 41.82 points, a 0.61 percent hike to 6,923.08.
The broader all shares index was up 19.26 points or 0.53 percent to 3,675.01.
Gainers edged losers 115 to 66 with 53 stocks unchanged. Trading turnover reached P6.28 billion.
The peso closed at 54.80 to the dollar, up from 55.085 on Tuesday. The currency opened at 55, and hit a high of 54.79 and a low of 55.02. Trading turnover reached $1.15 billion.
Most emerging Asian currencies firmed on Wednesday, after less-hawkish-than-feared comments from US Federal Reserve Chair Jerome Powell boosted risk appetite and raised hopes the Fed may soon ease monetary policy.
The peso firmed as much as 0.7 percent.
Bangko Sentral ng Pilipnas governor Felipe Medalla said inflation “most likely” peaked in January but warned another surprise supply shock could not be ruled out. Data on Tuesday showed annual inflation in the country rose by far more than expected in January to reach a 14-year high.
The US dollar eased on Wednesday after Fed’s Powell acknowledged that interest rates might need to move higher than expected if economic conditions remained strong but said that he felt a process of disinflation was underway.
Claire Alviar, analyst at Philstocks Financial Inc., said investors were encouraged as the employment rate in the country remains strong at 95.7 percent.
Alviar also said that the pronouncement of Powell in the US overnight also boost the sentiment “as this could be a sign that the Federal Reserve may soon pause its rate hikes.”
Most actively traded SM Investments Corp. was down P6 to P909. Ayala Land Inc. was up P0.15 to P29.20. Metropolitan Bank and Trust Co. was up P1.10 to P59.80. Nickel Asia Corp. was up P0.31 to P7.44. Ayala Corp. was up P4 to P714. Robinsons Land Corp. was up P0.34 to P16.42. Union Bank of the Philippines was up P0.90 to P91. SM Prime Holdings Inc. was up P0.80 to P38.30. Figaro Coffee Group Inc. was up P0.12 to P1.02. Metro Pacific Investments Corp. was steady at P4.15.
