Share prices ended higher yesterday amid investors gaining confidence anew on declining oil prices.
The Philippine Stock Exchange index (PSEi) was up 6.53 points to 7,026.45, a 0.09 percent hike.
The broader all shares index was up 19.61 points or 0.53 percent to 3,713.68.
Gainers edged losers 119 to 59 with 55 stocks unchanged. Trading turnover reached P7.76 billion.
The peso closed at 52.31 to the dollar, up from 52.415 on Tuesday.
The currency opened at 52.375 and hit a high of 52.20 and a low of 52.375. Trading turnover reached $1.046 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso rebounded “after global oil prices sharply corrected lower over the past week and the Nymex crude oil price remained below $100 for the second straight day to 2-week lows at $98 levels.”
Asian currencies meanwhile edged higher, with the Thai baht and Malaysian ringgit each firming 0.2 percent, Reuters reported.
The gains followed a relief rally on Wall Street overnight, driven by hopes of a resolution to the conflict in Ukraine. Ukrainian President Volodymyr Zelenskiy said Wednesday peace talks with Russia were sounding more realistic but more time was needed.
Moves in Asia were still cautious ahead of a closely watched Fed rate decision later in the day (1800 GMT). Markets have already priced in a 25 basis points (bps) rate hike and will look for further policy clues in light of surging inflation and volatile commodity prices following Russia’s invasion of Ukraine.
“Considering the risks around oil prices, Asia inflation and developed markets monetary tightening, the risks are skewed towards Asia central banks turning more hawkish ahead,” said Duncan Tan, a rates strategist at DBS Bank.
Luis Limlingan, managing director at Regina Capital Development Corp., said the market closed slightly higher on the back of declining oil prices.
“Meanwhile, Wall Street is betting that the central bank is going to hike rates for the first time since 2018,” he said.
Limlingan added gold prices continued to slide yesterday, pressured by a new round of Ukraine-Russia talks and bets on the Fed raising interest rates for the first time since 2018, an indication of investor confidence slowly returning.
Spot gold dropped 1.8 percent to $1,916.01/oz. US gold futures declined 2.2 percent to $1,917.70.
Most actively traded SM Prime Holdings Inc. was down P1.05 to P37.95. Ayala Land Inc. was up P0.20 to P35.60. International Container Terminal Services Inc. was down P2 to P218. BDO Unibank Inc. was down P0.50 to P129.20. SM Investments Corp. was down P11 to P900. PLDT Inc. was down P1 to P1,739. Bank of the Philippine Islands was down P1 to P95. Converge ICT Holdings Inc. was up P1.70 to P23.70. Metropolitan Bank and Trust Co. was down P0.75 to P52.25. JG Summit Holdings Inc. was down P0.75 to P58. – Ruelle Castro
