Share prices ended higher yesterday on bargain hunting, buoyed by the reported slower- than- expected pace of rate hike in the US.
The resulting risk-on environment led the peso lower.
The Philippine Stock Exchange index (PSEi) was up 84.07 points to 7,388.09, a 1.15 percent hike.
The broader all shares index was up 37.68 points to 3,918.42, a 0.97 percent hike.
Gainers edged losers 121 to 76 with 41 stocks unchanged. Trading turnover reached P8.26 billion.
The peso closed at 51.50 to the dollar, down from 51.42 on Wednesday.
The currency opened at 51.43 and hit a high of 51.42 and a low of 51.50. Trading turnover reached $789.38 million.
The Thai baht powered to a one-week high and other Asian currencies rose on Thursday, after the US central bank chief said the Russia-Ukraine crisis would not likely derail the policy plans, helping revive some appetite for riskier assets, Reuters reported.
Federal Reserve Chair Jerome Powell also backed a 25-basis point hike in March, effectively ruling out the prospect of the feared 50 basis points hike.
Powell, in a testimony late on Wednesday, said the bank was proceeding largely as planned on its interest rate hike cycle, unencumbered by risks from Russia’s invasion of Ukraine.
The testimony followed a heavy selloff in risky assets over the last few days, following the military crisis. As such, markets took Powell’s comments as a vote of confidence in the economy, even as the prospect of higher rates supported the dollar.
“That may be the assurances which market participants are seeking, who have been trying to adjust their expectations between geopolitical risks and Fed’s policy outlook,” said Yeap Jun Ron, a market strategist at IG.
Supply constraints from Russia’s invasion of Ukraine have sent commodity prices soaring, with crude oil futures hitting nine-year highs of $118.22 a barrel, and aluminum and palm oil hitting all-time highs.
SB Equities Inc. said the market pared back Wednesday’s losses “following reassuring comments from Powell over the pace of rate hikes which are expected to kick off this month, alleviating concerns of an aggressive unwind to combat elevated US inflation.”
“With the local market also expected to get a bump in weight in the MSCI Emerging Market & FTSE indices after both indexers announced they’d be removing Russia, the PSEi tracked Wall Street’s positive lead and traded in the green all session, helped by a return to foreign inflow, finishing on its day high,” it also said.
Most actively traded International Container Terminal Services Inc. was up P10 to P228.
Semirara Mining and Power Corp. was up P2.30 to P32.70. BDO Unibank Inc. was steady at P131. SM Prime Holdings Inc. was up P0.85 to P39.25. Solar Philippines Nueva Ecija Corp. was up P0.02 to P2.13. PLDT Inc. was up P80 to P1,830. SM Investments Corp. was up P27 to P957. Bank of the Philippine islands was up P0.35 to P98.50. Ayala Corp. was down P11.50 to P848. Nickel Asia Corp. was up P0.31 to P8.15.
