Stocks, peso advance; BDO tops active gainers

THE peso and the local stocks rebounded Thursday, with traders weighing the outlook for US interest rates as the Federal Reserve fights to get inflation under control.

The PSE index, the 30-company bellwether of the Philippine Stock Exchange, climbed 74 points, or 1.15 percent, to close at 6,520.44, as five of the six subsectors advanced, with the exception of mining and oil.

The index representing all shares went up 24 points, or 0.70 percent, to settle at 3,488.26 on a value turnover of P3.82 billion. Gainers led losers, 94 to 88, while 41 issues were unchanged.

Six of the 10 most active stocks ended in the green, led by BDO Unibank Inc. which climbed 4.25 percent to P135.00 and Monde Nissin Corp. which gained 1.95 percent to P9.43.

The peso recovered Thursday to close at 56.02 against the US dollar from 56.21Wednesday.

Most Asian stock markets also rose Thursday. The Hang Seng Index added 0.14 percent, or 29.21 points, to 20,396.97.

The Shanghai Composite Index dipped 0.09 percent, or 3.10 points, to 3,367.03, while the Shenzhen Composite Index on China’s second exchange shed 0.40 percent, or 8.56 points, to 2,117.95.

Tokyo’s key Nikkei index closed higher on Thursday following recent gains, as investors parsed US corporate earnings announcements for new trading cues.

The benchmark Nikkei 225 index gained 0.18 percent, or 50.81 points, to end at 28,657.57, while the broader Topix index edged down 0.03 percent, or 0.65 points, to 2.039.73.

The dollar fetched 134.56 yen, against 134.68 yen on Wednesday in New York.

Market players have been digesting quarterly earnings from the biggest American banks, with Morgan Stanley reporting a sharp decline in profits but still beating forecasts.

Stubbornly high UK inflation also prompted speculation about further tightening by the Bank of England –sending global shares lower including the Dow on Wall Street, which closed down 0.2 percent.

back “The into hotter-than-hot focus that global UK CPI inflation brought is proving more difficult to stamp out amid underlying solid demand,” Stephen Innes of SPI Asset Management said.

Traders in Japan were “spooked” by the UK reading as well as some underwhelming earnings, IwaiCosmo Securities said.

This caused Tokyo stocks to fall at the open, but they later rebounded, led by gains in shares related to inbound tourism, the brokerage added.