Stocks, peso extend rally

The main equities index rose anew on Tuesday amidst questions on China’s zero-Covid policy while the peso finished sideways against the United States dollar, according to a report by Philippine News Agency.

The Philippine Stock Exchange index (PSEi) improved by 1.49 percent, or 99.31 points, to 6,780.78 points.

All Shares followed with an increase of 0.94 percent, or 32.81 points, to 3,513.98 points.

Most of the sectoral gauges also gained during the day, led by Property after it rose by 3.57 percent.

It was trailed by Holding Firms, 1.68 percent; Services, 1.50 percent; and Financials, 0.67 percent.

On the other hand, Industrial rose by 0.77 percent and Mining and Oil by 0.41 percent.

Volume rose to 2.23 billion shares amounting to PHP23.47 billion.

Decliners led advancers at 103 to 88 while 42 shares were unchanged.

“The PSEi sustained its upward momentum and settled close to the 6,800 level on window dressing and the latest MSCI (Morgan Stanley Capital International) rebalancing,” Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, said.

Limlingan said this transpired amidst the weak opening of US equities due to rising frustration on China’s zero-Covid policy.

According to reports, demonstrations were held across China over the weekend as people questioned the government’s zero-Covid policy.

Meanwhile, the local currency ended the day at 56.56 from 56.64 on Monday.

It opened the day at 56.7, better than its 56.8 start in the previous session.

It traded between 56.72 and 56.5, resulting in an average of 56.598.

Volume reached USD1.03 billion, higher than the USD806.9 million a day ago.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the peso got a boost from the easing of concerns in China following the demonstrations over the weekend and the drop of the rate of the Philippines’ five-year Treasury bond (T-bond).

Ricafort said oil price in the international market has stabilized after the upticks earlier in the year because of the Russia-Ukraine conflict.

He said net foreign buying in the local bourse also backed the peso, citing gains of the main stock index.

There will be no trading on Wednesday because of the Bonifacio Day holiday.

For Thursday, Ricafort forecasts the peso to trade between 56.45 to 56.65 to a US dollar.