Share prices closed up Wednesday on last-minute buying. The peso closed lower.
The Philippine Stock Exchange index (PSEi) was up 40.60 points to 6,659.18, a 0.61 percent hike. The broader All Shares index was up 10.82 points or 0.31 percent to 3,516.57.
Gainers edged losers 99 to 91 with 40 stocks unchanged. Trading turnover reached P5.98 billion.
The peso closed at 57.385 to the dollar, down from 57.221 on Tuesday. The currency opened at 57.35, hitting a high of 55.385 and a low of 57.475. Trading turnover reached $1.16 billion.
Asian currencies weakened against a firm dollar on Wednesday as investors took a cautious approach on the US rate cut path, after optimism stoked by last week’s soft jobs data faded.
The South Korean won led losses among emerging Asian currencies with a 0.4 percent fall, while Thailand’s baht lost 0.3 percent.
The Indonesian rupiah fell 0.2 percent. The country’s finance minister said on Tuesday the volatility in forex markets over the last month needed to be monitored and carefully managed, adding that the dollar’s strength was having a more immediate effect.
The dollar has remained dominant this whole year and it is “going to remain resilient because in our view, the Fed is only going to cut one time this year,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
“The market by anticipating more than one cut by the Fed, is overdone in the dovish expectation of the Fed,” Tan added.
Among other currencies, the Taiwanese dollar fell 0.2 percent. Taiwan reported lower-than-expected inflation numbers on Tuesday.
The Malaysian ringgit fell by 0.2 percent ahead of a key interest rate decision on Thursday. The country’s central bank held rates steady at the last meeting but noted that the ringgit was undervalued.
“It is not a very acute situation for the (Malaysian) central bank, so I don’t think they will be driven to hike just because of the exchange rate,” Tan said.
Meanwhile, stock markets in the region were mixed as investors assessed the timing and number of likely US rate cuts this year, after last week’s softer-than-expected jobs data bolstered bets of policy easing.
The Japanese yen fell 0.4 percent, drifting further away from the highs scaled last week on suspected intervention from Japanese authorities to stop a sharp slide in the currency.
Luis Limlingan, managing director at Regina Capital Development Corp., noted that last-minute buying boosted the local stock market.
Most actively traded International Container Terminal Services Inc. was up P8.80 to P359. Alliance Global Group Inc. was down P0.20 to P9.70. Ayala Land Inc. was up P1.30 to P27.80. Universal Robina Corp. was up P0.50 to P110.50. SM Investments Corp. was down P26.50 to P921. SM Prime Holdings Inc. was up P1.85 to P27.85. Ayala Corp. was down P0.50 to P584.50. Aboitiz Power Corp. was down P1.75 to P35.30. BDO Unibank Inc. was down P2.10 to P146.20. Metropolitan Bank and Trust Co. was up P0.60 to P70.60.
