Share prices ended higher yesterday on bargain-hunting. The peso was also up.
Meanwhile, the Bureau of the Treasury (BTr) has fully awarded bids for the treasury bills auctioned yesterday even as rates rose across all tenors.
The auction was 2.2 times oversubscribed with total tenders reaching P32.8 billion.
With its decision, the BTr fully awarded the program of P15 billion.
“Rates sustained upward adjustments with inflation forecast from BSP (Bangko Sentral ng Pilipinas) exceeding six percent,” Rosalia de Leon, national treasurer told reporters.
“Market (is) seeing BSP delivering harder rate punch to quash inflation,” she added.
De Leon said the rates are aligned with those in the secondary market.
“There have been repricing already as secondary levels show following guidance from the BSP governor on inflation path,” de Leon said.
The 91-, 182- and 364-day treasury bills fetched average rates of 1.908 percent, 2.608 percent and 2.811 percent, respectively.
The comparative rates in the Bloomberg Valuation Service are 1.783 percent for the three-month paper, 2.211 percent for the six-month IOU and 2.606 percent in the one-year securities.
The Philippine Stock Exchange index (PSEi) rose 0.3 percent or 18.27 points to 6,183.62, while the broader all shares index went up 0.25 percent or 8.34 points to 3,348.46.
Losers edged gainers 111 to 69 with 50 stocks unchanged.
Trading turnover reached P3.35 billion.
The peso closed at 55.08 to the dollar, up from 55.09 on Friday.
The currency opened at 55.12, and hit a high of 54.97 and a low of 55.21. Trading turnover reached $976.26 million.
A firm dollar dented regional currencies as investors sought safe-haven assets, Reuters reported.
With the global economy struggling, demand for safe havens is favoring the dollar, especially at the expense of trade and export-driven Asian currencies, even as Fed rate hike expectations soften.
Japhet Tantiangco, analyst at Philstocks Financial Inc., attributed the rise of the index to bargain hunters taking opportunities from the market which has declined for four consecutive weeks.
“Trading was weak, however, as many investors remained on the sidelines due to lingering concerns such as the weakened peso and the possibilities of a global economic slowdown.
Investors were also wary ahead of the release of the country’s June inflation data,” Tantiangco said.
Most actively traded PLDT Inc. was up P59 to P1,729. Converge ICT Solutions Inc. was up P1.05 to P22. BDO Unibank Inc. was up P3.40 to P115.50. SM Prime Holdings Inc. was down P0.25 to P36.05. SM Investments Corp. was up P30 to P800. Ayala Land Inc. was down P0.30 to P25.70. Semirara Mining and Power Corp. was up P0.20 to P36.20.
International Container Terminal Services Inc. was down P7.20 to P183.80. Universal Robina Corp. was up P1.50 to P110.50. Jollibee Foods Corp. was down P1.80 to P203.20.
