THE MAIN INDEX recovered on Thursday to end at the 6,700 level for the first time since April, amid a strengthening peso and a positive economic outlook for the Philippines.
The benchmark Philippine Stock Exchange index (PSEi) rose 0.25% or 17.30 points on Thursday to end at 6,705.01, while the broader all-stock index rose 0.22% or 8.24 points to end at 3,602 ,86.
This was the PSEi’s best close since April 29’s 6,769.64 and marked the first time the PSEi finished at the 6,700 level since its April 30 finish of 6,700.49.
“The local market continued its climb as investors cheered the peso’s continued improvement against the dollar… The stock closed above the 6,700 resistance level after testing it in recent days,” Mikhail Philippe Q, Research and Engagement Officer of Philstocks Financial, Inc. Plopenio said in a Viber message.
After hitting a 17-month low last month amid bets over the timing of monetary easing here and in the United States, the peso has since recovered against the dollar.
On Thursday, the local unit rose for the third straight day to close at P58.25 against the dollar, data from the Bankers Association of the Philippines showed. This was 4.5 centavos stronger than Wednesday’s P58.295 finish and marked the peso’s best close since May 28’s P57.97.
“Also, the Asian Development Bank (ADB) projection that the Philippines would lead the Association of Southeast Asian Nations (ASEAN) region together with Vietnam in terms of economic growth for 2024 and 2025 cheered investors,” Mr. Plopenio said .
The ADB said Thursday it expects the Philippine gross domestic product (GDP) to grow 6% this year, at the lower end of the government’s target of 6-7%. For 2025, the ADB expects Philippine GDP to grow 6.2%, below the government’s target of 6.5-7.5%.
“Philippine stocks continued to rise as regional stocks moved away from technology-driven companies. Analysts are concerned that this shift may not protect stocks from potential challenges from an economic slowdown,” Luis A. Limlingan, chief sales officer of Regina Capital Development Corp., added in a Viber message.
Sectoral indices were mixed. Financial values rose by 2.55% or 50.90 points to 2,045.25; industry and services rose by 0.56% or 51.53 points to 9,222.91; and the services sector rose 0.26% or 5.30 points to 2,030.09.
Meanwhile, mining and oil fell 1.79% or 160.97 points to 8,803.27; holdings fell 1.13% or 66.39 points to 5,765.43; and real estate fell by 0.64% or 17.27 points to 2,670.53.
Value turnover rose to P4.61 billion on Thursday with 1.08 billion shares changing hands, up from P4.22 billion with 694.38 million shares traded on Wednesday.
The decliners defeated the advanced ones, 89 versus 80, while 59 problems remained unchanged.
Net foreign purchases fell to P385.96 million on Thursday from P715.58 million on Wednesday. — RMDO