Share prices closed up Monday, tracking overseas leads. The peso closed up.
The Philippine Stock Exchange index (PSEi) was up 39.19 points to 6,284.37, a 0.63 percent hike.
The broader All Shares index was up 15.22 points or 0.46 percent to 3,347.44.
Losers edged gainers 91 to 83 with 46 stocks unchanged. Trading turnover reached P3.76 billion.
The peso closed at 55.34 to the dollar, up from 55.40 on Friday. The currency opened at 55.34, hitting a high of 55.22 and a low of 55.37. Trading turnover reached $1.11 billion.
Most emerging Southeast Asian currencies were higher on Monday, as investors assessed remarks from Federal Reserve Chair Jerome Powell that reaffirmed expectations that the US monetary tightening cycle has come to an end.
The Malaysian ringgit and the Philippine peso led the pack, adding 0.4 percent each.
Taiwanese dollar and Indonesian rupiah gained 0.3 percent each.
Risk appetite improved on expectations the next move by the US central bank will be to cut rates, with Powell on Friday declining the opportunity to push back hard against aggressive market pricing.
All eyes will be on the November US jobs report due on Wednesday that could influence the outlook for US interest rates.
The US dollar index, which tracks the currency against six major counterparts, edged up to 103.33 in the Asian afternoon, but was still not far from Friday’s close.
The unit lost 3 percent of its value in November, helping emerging Asian assets regain some lost ground.
“While risk currencies may remain buoyed ahead of next week’s FOMC, ‘risk on’ may not be unequivocally bold in shorting the USD either,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote.
Thailand’s baht and the Indian rupee traded largely flat.
Recent volatility in oil prices over the conflict in the Middle East and uncertainty over OPEC+ voluntary output cuts have dented confidence in net oil-importing countries such as India and Thailand.
Markets will be watching out for a slate of regional inflation data due later this week, with the Philippines on Tuesday, Taiwan on Wednesday and Thailand on Thursday.
Bangko Sentral ng Pilipinas last week highlighted still strong annual inflation for November, flagging higher prices on food, electricity and toll prices as primary factors pushing prices upward.
In China, the yuan was largely flat after the country’s central bank set another firm fix for the local unit.
Trade figures for China are due later in the week with the recent trend of softening exports to the US overshadowing gains in Asia.
“The RMB continues to be supported by the soft USD environment, but its domestic fundamentals paint a less upbeat picture,” analysts at HSBC said in a note.
Claire Alviar, analyst at Philstocks Financial Inc., said the market went up against the backdrop of a strong S&P Global Philippines Manufacturing Purchasing Managers’ Index which improved to 52.7 in November, indicating an expansion.
“Moreover, hopes that the Philippine inflation last month would slow down, helped lift the sentiment. However, many were still seen on the sidelines as they wait for the release of the inflation rate,” she said.
Most actively traded SM Investments Corp. was steady at P825. BDO Unibank Inc. was up P0.50 to P131.50. Jollibee Foods Corp. was up P10.20 to P244. International Container Terminal Services Inc. was up P0.20 to P220. Bank of the Philippine Islands was up P1.20 to P105.70. Ayala Land Inc. was steady at P31. SP New Energy Corp. was up P0.04 to P1.21. Universal Robina Corp. was up P0.90 to P114. Robinsons Land Corp. was up P0.44 to P15. SM Prime Holdings Inc. was up P0.05 to P33.05.
