PSEi hits new record-high after Monday'scorrection; peso shed anew

MANILA - - The Philippine Stock Exchange index (PSEi) posted a new record-high on Tuesday after a slight correction in the previous day while the peso weakened due to strong corporate demand for the US dollar.

PSEi inched up by 2.04 percent, or 178.60 points, to 8,923.72 points, which a trader attributed to hopes for the positive impact of the government’s tax reform program and the over-all optimism for the global economy.

The trader said the main index’rise was in line with its peers in the Asia Pacific region due partly to the commencement of the inter-Korea peace talks.

All the other indices tracked the main index, with the broader All Shares up by 1.44 percent, or 72.86 points, to 5,138.63 points.

Property led the sectors with an increase of 2.40 percent, followed by the Financials, 2.24 percent; Holding Firms, 1.73 percent; Industrial, 1.17 percent; and Services, 0.82 per cent .

However, volume was thin at 709.37 million shares amounting to PHP8.36 billion.

Gainers, meanwhile, surpassed losers at 118 to 93 while 47 shares were unchanged.

On the other hand, the peso depreciated anew and shed PHP0.14 to close the day at 50.29 from Monday’s 50.15 finish.

A trader said corporates picked up greenback after it weakened Monday on expectations of more rate hikes in the US.

These concerns resulted in the currency’s further drop Tuesday when it opened at 50.18 from 49.86 in the previous session.

It traded between 50.34 and 50.15 resulting an average of 50.23.

Volume for the day reached USD917.2 million, higher than the USD797.1 million a day ago.

BDO chief strategist Jonathan Ravelas, in a tweet, said that with the local currency ending the week's first trading day at 50.15 it is projected to hit a “near-term bottom at 49.705.”

“Expect a move towards the 50.30/ 50.50 levels in the near term,” he said and for the pair to range between 50.00 and 50.25. (PNA)