Share prices ended up Wednesday amid investors betting the restriction imposed on the country’s capital would be eased after August 20, 2021.
The Philippine Stock Exchange index (PSEi) gained 118.77 points to 6,680.18, a 1.81 percent hike. The broader all shares index was up 45.94 points to 4,118.41, a 1.13 percent hike.
Gainers edged losers 94 to 88 with 55 stocks unchanged. Trading turnover reached P6.18 billion.
The peso, meanwhile, closed at 50.43 to the dollar, down from 50.401 on Tuesday. It opened at 50.37, hitting a high of 50.25 and a low of 50.43. Trading turnover reached $796.1 million.
The South Korean won led gains among Asian currencies, gaining over 0.6 percent, after a six-day hammering prompted the finance ministry to monitor the currency market more closely, Reuters reported.
A finance ministry official said he was closely monitoring exchange rates as dollar-won could shoot up further, and that the won’s weakness this week was due to foreign investors selling stocks.
Other currencies in the region strengthened with the Indonesian rupiah was the outlier, dropping nearly 0.1 percent.
Markets shrugged off weak US data showing retail sales in July fell more than expected.
“With the strong job gains seen in July, it suggests that there may still be room for more spending ahead. Much will depend on the timeline for which the virus situation eases,” Yeap Jun Rong, a market strategist at IG said in a note.
Thai stocks hit their highest in nearly a month, while the Thai baht strengthened.
Minutes of the country’s central bank meeting showed two members of Thailand’s monetary policy committee who pushed unsuccessfully for a rate cut earlier this month argued action was needed because of risks of economic slowdown.
Claire Alviar, analyst at Philstocks Financial Inc. said Wednesdays rally is seen to reflect “investors’ hopes towards the easing of restrictions in the National Capital Region (NCR) after August 20, 2021.”
“Investors are hoping that concessions would be given to the economy, through the allowing of more consumer and business activities in the NCR,” she said.
Most actively traded Bank of the Philippine Islands was up P0.80 to P84. Emperador Inc. was up P1.82 to P16. AC Energy Corp. was down P0.25 to P8.76. Globe Telecom Inc. was up P52 to P184.30. BDO Unibank Inc. was up P1.70 to P112.80. International Container Terminal Services Inc. was up P0.30 to P184.30. SM Investments Corp. was up P40 to P1,000. SM Prime Holdings Inc. was up P0.95 to P34.90. Ayala Land Inc. was up P1.20 to P34.50. DMCI Holdings Inc. was up P0.23 to P6.26. — with Reuters
