Share prices rose Thursday on increased appetite as investors look forward to further easing in monetary policy.
The peso closed up.
The Philippine Stock Exchange index was up 61.34 points to 6,961.96, a 0.89 percent hike.
The broader All Shares index was up 25.35 points or 0.68 percent to 3,749.73.
Gainers edged losers 117 to 80 with 43 stocks unchanged. Trading turnover reached P6.99 billion.
The peso closed at 56.333 to the dollar, up from 56.50 on Wednesday. The currency opened at 56.333, hitting a high of 56.28 and a low of 56.38. Trading turnover reached $1.59 billion.
The peso was the lone gainer among emerging Asian currencies while stocks in Manila climbed as foreign inflows surged on expectations of further monetary policy easing amid sustained growth prospects, Reuters reported.
The peso rose 0.4 percent against a steady dollar, hitting its highest since early April.
“The Bangko Sentral Ng Pilipinas’ (BSP) cut last week has been seen as supportive for growth while foreign inflows into Philippine equities continue to keep the peso supported,” said Christopher Wong, currency strategist at OCBC.
Wong expects the BSP to cut rates once more this year in the fourth quarter.
The BSP cut interest rates for the first time last week in almost four years and signalled more to come to preserve the ongoing momentum of economic growth in the country.
Other regional currencies were subdued as investors awaited comments from Federal Reserve Chair Jerome Powell to gauge the US rate outlook, while the rupiah was hit by rising political uncertainty.
Japhet Tantiangco, analyst at Philstocks Financial Inc., said investors “took cues from Wall Street’s rally overnight driven by the Federal Reserve’s July minutes of the meeting which hinted of possible rate cuts by September.”
“Investors also cheered the strengthening of the local currency,” Tantiangco said.
Most actively traded International Container Terminal Services Inc. was up P6.20 to P417.20. BDO Unibank Inc. was up P5.50 to P154. ACEN Corp. was down P0.26 to P5.20. Bank of the Philippine Islands was up P3.20 to P124.80. DigiPlus Interactive Corp. was up P0.85 to P20.95. SM Investments Corp. was up P3 to P935. SM Prime Holdings Inc. was down P0.05 to P29.70. Metropolitan Bank and Trust Co. was up P1.15 to P74.80. Converge ICT Solutions Inc. was up P0.56 to P14.98. Ayala Land Inc. was down P0.45 to 32.75.
