Peso recovers, PSEi climbs back to 6,600

THE peso regained some ground on Tuesday and the stock market rose for a second straight day to return to the 6,600 level.

The currency strengthened by 17 centavos to P56.155 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) added 38.41 points, or 0.58 percent, to end the day at 6,621.88.

The broader All Shares also advanced, by 13.74 points or 0.39 percent, to 3,493.56.

The peso opened trading at P56.35:$1 and ranged from P56.1 to P56.435. Volume fell to P1.396 billion from the previous day’s P1.708 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso strengthened following a US dollar correction that was driven by ongoing expectations of Federal Reserve rate cuts and the PSEi’s gains.

Philstocks Financial Inc. researcher Mikhail Plopenio said the bourse closed higher as investors were heartened by “record runs of both the S&P 500 (Standard and Poor’s 500) and the DJIA (Dow Jones Industrial Average).”

Plopenio said the optimism brought by US markets’ overnight gains “kept the local bourse in green territory for the whole session.”

Regina Capital Development Corp. Managing Director Luis Limlingan said “Wall Street is indeed in a bull run that began in October 2022.”

Market participation remained weak locally, with a net value turnover of P3.55 billion that was lower than the month-to-date average of P4.45 billion.

Foreigners were net sellers, recording a net outflow of P421.62 million.

All sector indices closed in green territory, with property and financials gaining the most by 1.09 percent and 1.05 percent, respectively.

Advancers outnumbered decliners, 100 against 88, while 49 were unchanged.