Share prices ended up Monday, tracking overseas leads, while the local currency peso closed higher as the dollar posted its first monthly drop in five months.
The Philippine Stock Exchange index (PSEi) gained 96.18 points to close at 6,822.32, a 1.43 percent hike. The broader all shares index was up 36.94 points to 3,633.07, a 1.03 percent hike.
Gainers edged losers 114 to 76 with 51 stocks unchanged. Trading turnover reached $7 billion.
The peso closed at 52.31 to the dollar, up from 52.32 on Monday. It opened at 52.20, hitting a high of 51.26 and a low of 52.33. Trading turnover reached $1.2 billion.
Most Asian currencies bounced on Monday as stimulus measures announced by Shanghai authorities to support the economy boosted risk appetite, while a subdued US dollar also aided gains, Reuters reported.
Over the weekend, China inched towards ending a two-month coronavirus lockdown in Shanghai from Wednesday, with city officials introducing an action plan – consisting of 50 policy measures – to revive the country’s commercial hub.
This helped MSCI’s broadest index of Asia-Pacific shares outside Japan jump 2.2 to its highest level in more than three weeks.
The prospect of easing coronavirus curbs, combined with a wave of policy measures from China – including its national 33-point stimulus plan – will take some edge off the adverse impact from its zero-COVID stance, said Vishnu Varathan, an analyst with Mizuho Bank.
The greenback was headed for its first monthly drop in five weeks with investors scaling back bets that rising US rates will spur further gains and as fears of a global recession have receded a little.
This supported broad gains among emerging Asian currencies. Taiwan’s dollar and South Korean won rose 0.6 percent each to lead advances, while China’s yuan added 0.4 percent.
Indonesia said on Friday it will allocate about 1 million tons of palm oil for export, prioritizing companies that have been registered for the government’s bulk cooking oil program, after shipments were allowed to restart from May 23.
Japhet Tantiangco, analyst at Philstocks Financial Inc., noted that the market picked up as global economic concerns ease.
“The market took cues from Wall Street’s positive performance last Friday backed by the growth slowdown of the US’ core personal consumption expenditures price index,” he said.
“Investors also cheered the easing of restrictions in China,” he added.
Aristotle Reyes, trader at UPCC Securities Corp., however said the market continues to move sideways.
Most actively traded Converge ICT Solutions Inc. was down P0.45 to P26.50. SM Prime Holdings Inc. was up P0.20 to P38. Ayala Land Inc. was up P0.75 to P29.60. BDO Unibank Inc. was up P2.80 to P130.10. Monde Nissin Corp. was down P0.88 to P15.80. Ayala Corp. was up P21.50 to P701. Metropolitan Bank and Trust Co. was up P1.30 to P55.10. Bank of the Philippine Islands was up P1.90 to P97.50. AC Energy Corp. was up P0.22 to P7.17.
Moves in regional equity markets were also led by South Korea and Taiwan, where stock indexes climbed 1.2 percent and 1.5 percent, respectively.
Stocks in energy export-oriented Indonesia and Malaysia bucked the broader trend to lose 0.7 percent and 0.3 percent, respectively, as Malaysian palm oil futures eased amid uncertainties around the resumption of Indonesian exports.
Indonesia said on Friday it will allocate about 1 million tons of palm oil for export, prioritizing companies that have been registered for the government’s bulk cooking oil program, after shipments were allowed to restart from May 23.
Amid a relatively light economic calendar in Asia, market participants will focus on China’s Purchasing Managers’ Index figures for May, due on Tuesday, for fresh clues on economic conditions in the world’s second-largest economy.
“The PMI figure is expected to lift off its April low but will remain in contractionary territory,” IG market analyst Yeap Jun Rong said.
The Indonesian rupiah and the Malaysian ringgit rose 0.2 percent each, while the Singapore dollar was 0.1 percent firmer against the US dollar. — with Reuters
