Share prices ended higher on Tuesday amid continuing optimism on the prospects of the economy.
The peso closed up.
Analysts said the peso could be one the currencies in the region to play catch up in recovering this year’s losses.
The Philippine Stock Exchange index was up 54.89 points to 6,944.76, a 0.8 percent hike.
The broader All Shares index was up 22.64 points or 0.61 percent to 3,729.09.
Losers edged gainers 120 to 89 with 51 stocks unchanged. Trading turnover reached P8.09 billion.
The peso closed 56.55 to the dollar, up from 56.64 on Monday. The currency opened at 56.60, and hit a high of 56.51 and a low of 56.64. Trading turnover reached $1.55 billion.
“We view the Asian currency rebound as a recovery of the losses from the Fed’s ‘high for longer’ rates stance in the first half of this year,” senior FX Strategist Philip Wee from DBS wrote in a client note.
“There is scope for the South Korean won, Philippines peso and Indonesian rupiah to play catch up in recovering this year’s losses,” he added.
Investors will focus on the Jackson Hole symposium later this week, where Fed Chair Jerome Powell is likely to acknowledge the possibility of a rate cut in the September meeting.
That could boost riskier Asian assets and drive a weakening trend in the dollar, with inflation also easing in most emerging Asian economies.
Luis Limlingan, managing director at Regina Capital and Development Corp., said investors continue to buy into the “strong earnings, recent 25-basis point cut and upgrade by Japan Credit Rating Agency to investment grade of the country.”
Most actively traded International Container Terminal Services Inc. was up P16 to P412.
BDO Unibank Inc. was up P5.80 to P152.80. Ayala Land Inc. was up P0.05 to P34.35. SM Prime Holdings Inc. was down P0.65 to P30. SM Investments Corp. was up P5 to P930.
