Share prices closed higher Monday amid investors’ optimism of a cooling inflation in the US, which will benefit the local stock market.
The peso closed down.
The Philippine Stock Exchange index (PSEi) was up 109.75, a 1.66 percent hike to 6,15.75.
The broader all shares index was up 39.35 points or 1.12 percent to 3,545.82.
Gainers edged losers 113 to 79 with 52 stocks unchanged. Trading turnover reached P4.31 billion.
The peso closed at 56.86 to the dollar, down from 56.82 on Friday.
The currency opened at 56.85 and hit a high of 56.84 and a low of 57.07. Trading turnover reached $897.2 million.
Most Asian currencies slipped in thin trading on Monday, Reuters reported.
“A weaker dollar is providing some boost to risk appetite. Markets are taking their cue from the price action on Friday in the US,” said Irene Cheung, a senior Asia strategist at ANZ in Singapore.
On Friday, major Wall Street indexes recorded their first weekly gain in four as investors went on a buying spree, shrugging off concerns about the economic outlook.
Investors are waiting for Tuesday’s US CPI report after Federal Reserve officials continued their hawkish rhetoric on Friday.
Bulls are hoping US consumer prices will hint at a peak for inflation. Falling petrol prices are seen pulling down the headline Indonesia’s rupiah and the Malaysian ringgit dipped 0.1 percent each, even as the dollar hovered near a two-week low. The dollar was restrained by the risk of higher European interest rates and Japanese intervention.
Luis Limlingan, managing director at Regina Capital and Development Corp., said investors are looking ahead at the release of the US August consumer price index report set for Tuesday.
“The report is one of the last pieces of data on inflation the Wall St. will see ahead of the Fed’s meeting on September,” he said.
Limlingan said investors are looking for signs the size of future rate hikes might be smaller as inflation cools off.
Most actively traded SM Investments Corp. was up P20 to P885. Ayala Land Inc. was up P1.35 to P29.15. San Miguel Corp. was up P0.15 to P98.65. SM Prime Holdings Inc. was up P0.05 to P36.45. Metropolitan Bank and Trust Co. was up P1 to P54. Universal Robina Corp. was down P0.70 to P128.30. BDO Unibank Inc. was up P2 to P128. Globe Telecom Inc. was up P40 to P2,130. Bank of the Philippine Islands was up P2.15 to P98.25. Ayala Corp. was up P16 to P733.
