Share prices ended higher yesterday on bargain hunting, going against the trend set by regional markets as traders bolstered their bets on US rate hikes in 2022 after Federal Reserve Chair Jerome Powell was re-nominated to lead the US central bank for a second term.
The Philippine Stock Exchange index (PSEi) gained 118.49 points to 7,401.16, a 1.63 percent hike. The broader all shares index was up 58.69 points to 3,937.64, a 1.51 percent hike.
Gainers edged losers 133 to 56 with 53 stocks unchanged. Trading turnover reached P9.27 billion.
The peso also posted gains, closing at 50.59 to the dollar from 50.65 on Monday.
The local currency opened at 50.70, hitting a high of 50.58 and a low of 50.765.
Trading turnover reached $1.24 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that while the peso appreciated, it remains among its weakest close in nearly 3 weeks or since November 4, 2021, following the reported re-nomination of Fed Chair Jerome Powell for another 4-year term to help sustain economic recovery of the US from the pandemic.
The overnight news on Powell buffeted financial markets and boosted the US dollar and treasury yields, as traders prepared for the imminent end to the Fed’s large scale coronavirus-led emergency Fed bond-buying program, Reuters reported.
The regional currencies weakened with the Thai baht hitting a two-week low. The South Korean won and Malaysian ringgit fell 0.4 percent and 0.2 percent, respectively.
“Except for CNY (Chinese yuan), most currencies, including those in EM Asia, cowered under a stronger dollar from higher US Treasury yields and the sell-off in S&P and Nasdaq,” said Philip Wee, FX strategist at DBS.
Claire Alviar, analyst at Philstocks Financial Inc., said bargain hunting pushed the market to close up.
“The approval of the House of Representatives on the second reading to extend the validity of the P4.5 trillion 2021 national budget until next year also spurred optimism in the market. Extending the budget is favorable to the economy as it is expected to boost the country’s spending,” she said.
Foreign funds were net sellers worth P775.75 million.
Most actively traded Monde Nissin Corp. was up by P0.36 to close at P19.98. Converge ICT Holdings Inc. rose by P1.20 to P32.
BDO Unibank Inc. gained P5.50 to P133.50. AC Energy Corp. was up P0.14 to P12.04.
International Container Terminal Services Inc. was up P5 to P198.
Globe Telecom Inc. lost P20 and settled at P2,600.
Ayala Corp. was up P17.50 to P897.50. The Keeper Holdings Inc. was up P0.02 to P1.64.
SM Prime Holdings Inc. was up P0.95 to P36.85. Synergy Gid and Development Phil. Inc. was up P0.42 to P15.48.
