PHILIPPINE SHARES rebounded on Thursday as investors returned to the market to take advantage of lower stock prices after recent losses, but the peso’s plunge to the P63 level against the dollar hit market sentiment.
The Philippine Stock Exchange index (PSEi) went up by 0.82% or 45.94 points to close at 5,663.17, while the broader all shares index rose by 0.5% or 15.83 points to 3,174.69.
The main stock benchmark opened Thursday’s session at 5,598.06, below Wednesday’s close of 5,617.23 and marking the first time it touched the 5,500 level intraday since Oct. 2. It slid to a low of 5,564.47, while its intraday high was at 5,673.13.
“The local index rebounded following two consecutive trading sessions of declines, supported by bargain hunting across the board. However, prevailing market sentiment remained cautious as the peso touched the P63-a-dollar level intraday, reflecting continued currency weakness,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said via Viber.
“Moving forward, the market is expected to remain wary of economic and geopolitical developments, with investors closely monitoring peso movements and broader macroeconomic conditions,” he said.
The peso slid by 19 centavos to finish at a new all-time low of P63.06 against the dollar on Thursday, beating the previous record close of P62.90 logged on Oct. 8, Bankers Association of the Philippines data showed. It also hit an intraday low of P63.15 during the session, breaching the previous historic low of P62.925 seen on Sept. 15.
“The PSEi closed higher on Thursday, snapping a two-day decline as investors picked up bargains following the steep sell-off earlier in the week. Sentiment may have also been supported by easing US Treasury yields overnight as investors shifted toward safe-haven bonds amid weakness in US equities,” COL Financial Group, Inc. Research Analyst Denise Joaquin said in a Viber message.
Foreign buying also supported the market, snapping five straight sessions of net outflows, she said.
Net foreign buying was at P140.50 million, a turnaround from the P902.34 million in net selling recorded in the previous session.
Four of six sectoral indices closed higher on Thursday. Property rose by 1.89% or 32.92 points to 1,770.70; financials increased by 1.28% or 22.48 points to 1,778.89; services went up by 0.51% or 14.97 points to 2,928.52; and holding firms climbed by 0.4% or 16.93 points to 4,257.88.
Meanwhile, mining and oil dropped by 2.47% or 475.46 points to 18,764.21, and industrial went down by 0.3% or 22.44 points to 7,359.70.
Advancers narrowly beat decliners, 91 to 89, while 66 names were unchanged.
Value turnover rose to P6.99 billion on Thursday with 664.92 million shares traded from the P6.51 billion with 779.08 million issues on Wednesday. — Alexandria Grace C. Magno