Share prices ended higher Tuesday on bargain hunting. The peso closed up.
The Philippine Stock Exchange index (PSEi) was up 158.31 points, a 2.65 percent hike, to 6,128.64.
The broader all shares index was up 54.88 points or 1.72 percent to 3,253.51.
Gainers edged losers 109 to 73 with 52 stocks unchanged. Trading turnover reached P4.82 billion.
The peso closed at 58.75 to the dollar, up from 59 on Monday.
The currency opened at 58.90 and hit a high of 58.75 and a low of 58.995. Trading turnover reached $610.80 million.
Asian currencies strengthened against a subdued dollar and equities advanced on Tuesday as risk appetite got a boost from an upbeat start of corporate earnings season in the United States and a reversal in the United Kingdom’s financial policy.
The US dollar too took a breather from its recent rally with the index sagging to near a 1-1/2-week low, boosting regional currencies.
In the United Kingdom, new finance minister Jeremy Hunt immediately reversed course on many of Prime Minister Liz Truss’ fiscal measures, which had unnerved markets in recent weeks. Also aiding risk sentiment was consensus-beating results for Bank of America, which lifted Wall Street overnight.
That injected positive sentiment into global markets, lifting Asian equities. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.43 percent, while Japan’s Nikkei was up 0.6 percent.
“Better than expected earnings means equities could further rally and we could see (the) dollar further retrace, which should be slightly positive for emerging Asia,” said Alex Loo, macro strategist for TD Securities.
The brokerage, however, is recommending buying dollars on dips over the long-term given that inflation in the United States doesn’t seem to be easing, Loo said.
Among emerging markets in Asia, South Korea’s won appreciated the most for currencies, strengthening as much as 1.1 percent to touch over a one-week high, while its equities advanced about 1 percent.
The Philippine peso, Singapore dollar, Indonesian rupiah, Malaysian ringgit and the Indian rupee appreciated between 0.2 percent and 0.5 percent.
Meanwhile, China’s yuan and equities were flat amid the nation’s once-in-five-year Communist Party Congress.
Beijing delayed the release of economic indicators scheduled for publication this week, including its third-quarter gross domestic product (GDP) data due on Tuesday.
Luis Limlingan, managing director at Regina Capital Development Corp., said bargain hunters pulled the PSEi back to the 6,000 level, as investors picked up badly beaten index names across the board.
Most actively traded Ayala Land Inc. was up P1.85 to P25.80. SM Prime Holdings Inc. was up P1 to P34. SM Investments Corp. was up P13 to P786. Semirara Mining and Power Corp. was up P0.05 to P41.55. BDO Unibank Inc. was up P5 to P123. Ayala Corp. was up P39 to P649. DMCI Holdings Inc. was down P0.44 to P10.16. Globe Telecom Inc. was up P106 to P2,306. Bank of the Philippine Islands was up P1.30 to P91.80. International Container Terminal Services Inc. was up P4.60 to P176.60. – Ruelle Castro
