The stock market registered a record high at the close of trading in 2017, while the peso rallied to 49.93 on upbeat prospects on the Philippine economy.
The Philippine Stock Exchange Index rose 23.33 points, or 0.3 percent, to an all-time high of 8,558.42 on a value turnover of P7.3 billion, boosted by window-dressing. Gainers beat losers, 115 to 94, with 45 issues unchanged.
BDO Unibank Inc., the biggest lender in terms of assets, climbed 3.7 percent to P164, while Manila Electric Co., the largest electricity retailer, gained 1.4 percent to a year-high of P328.60.
SM Investments Corp. of retail tycoon Henry Sy added 1 percent to P990, while Bank of the Philippine Islands, the third-biggest bank, advanced 1.3 percent to P108.10.
The peso capped 2017 on a positive note after posting a fresh six-month high against the US dollar on the last trading day of the year, mainly on the sustained strong macroeconomic fundamentals backed by the passage into law of the first package of the government’s Comprehensive Tax Reform Program.
The peso gained five centavos to close at 49.93 from 49.98 a day ago. It was the local currency’s strongest level in more than six months, or since 49.91 on June 19, 2017. Total volume turnover stood at $742.2 million, up from $625.3 million previously.
The peso was just P0.21 short of 49.72 at the close of the last trading day a year ago.
Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr. said earlier the stronger peso was due to a “combination of strong remittances and equity inflows as well as US dollar softness over uncertainty of impact of US tax legislation.”
Latest data showed that money sent home by overseas Filipinos in October 2017 grew 8.4 percent to $2.275 billion from $2.099 billion a year ago, the fastest in seven months, fueled by the increase in remittances from both land- and sea-based workers.
The figure brought cash remittances in the first 10 months to $23.056 billion, up 4.2 percent from $22.124 billion a year ago.
The dollar, meanwhile, suffered fresh pressure on Friday as traders cash in the recent gains fueled by Donald Trump’s tax cuts, while most Asian equities were on course to end a strong year on a positive note.
Asia’s biggest markets have enjoyed huge gains over the past year”•with Hong Kong up more than a third and Tokyo nearly 20 percent higher”•fueled by expectations that Donald Trump would push through business-friendly measures.
In holiday-thinned share trading Hong Kong was up 0.3 percent in the afternoon and Shanghai ended 0.3 percent higher.
Tokyo closed 0.1 percent down, with tech titan SoftBank reversing early gains to end 0.1 percent off after announcing a deal to take a huge stake in US ride-sharing giant Uber.
Singapore gained 0.2 percent while Taipei and Jakarta were all higher.
However, Sydney eased 0.4 percent and Wellington was 0.1 percent down. Seoul was closed for a holiday. With Julito G. Rada, AFP