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Philippines: Stocks, peso bounce back as inflation fears ease
MANILA, Philippines — The benchmark Philippine Stock Exchange index (PSEi) ended in positive territory yesterday, but volume was too low indicating that market investors are still risk averse and still waiting for inflation to stabilize.
The PSEi finished at 6,987.02, up 60.51 points or 0.87 percent while the broader All-Shares gauge lost 13.13 or 0.30 percent.
All counters finished in the green as well, but total value turnover was remarkably thin, reaching only P4.745 billion.
Advancing stocks outpaced decliners, 100 to 83 while 51 issues were unchanged.
Philstocks Financials said the technical bounce was supported by bargain hunting resulting in the rally at the close.
But Philstocks said bears still have the upper hand as the market ended below the 7,000 support level.
The decline in dollar remittances from overseas Filipinos may have also contributed to the bearish sentiment.
Dollar remittances decreased by 1.4 percent year-on-year to $19.1 billion in August.
On the other hand, OFW remittances were up from January to August by 2.4 percent to $21.2 billion compared to last year.
Still, net foreign selling was lower yesterday at only P223 million from the above P700 million mark the past three days.
Traders said this may have contributed to yesterday’s gain.
Meanwhile, the peso yesterday recovered and returned to the 53 to $1 level, gaining 12 centavos after a member of the Monetary Board hinted the Bangko Sentral ng Pilipinas may take a breather after a series of rate hikes.
The local currency closed at 53.96 to $1 from Monday’s 54.08 to $1. It opened stronger at 54.03 and weakened to hit an intraday low of 54.09 before gaining to close stronger. – With Lawrence Agcaoili
Source: https://www.philstar.com/business/2018/10/17/1860594/stocks-peso-bounce-back-inflation-fears-ease#sBGRO6Y5UKM1J7rW.99