The bellwether Philippine Stock Exchange index (PSEi) rebounded slightly Tuesday amid bargain-hunting after two straight days of heavy selling, but the Philippine peso tumbled to an all-time low against the US dollar.
The country’s main stock barometer rose 19.40 points, or 0.33 percent, to close at 5,953.16. The broader all-shares index inched up by 7.78 points, or 0.22 percent, to 3,589.51.
“The Philippine market ended higher driven by bargain hunting after two consecutive trading days of strong selling,” said Luis Limlingan, head of sales at Regina Capital Development Corp.
Investors, however, remained cautious, closely monitoring upcoming earnings reports and anticipating the next move by the US Federal Reserve, which could influence market direction, Limlingan said. Easing US-China trade tensions, however, could provide some boost to the market.
Sectoral indices ended mixed amid the cautious sentiment. Financial rose by 1.15 percent, while services and holding firms climbed 0.43 percent and 0.05 percent, respectively.
Mining and oil plunged by 4.42 percent, while industrial and property declined by 0.27 percent and 0.02 percent, respectively.
Market turnover stood at P4.05 billion. Foreign investors were net sellers with outflows at P432.5 million.
Gains were led by banks, with BDO Unibank Inc. and Bank of the Philippine Islands (BPI) among the top performers. BDO’s share price rose 2.67 percent to P134.50, while BPI gained 1.46 percent to P104.
Meanwhile, the Philippine peso fell to an all-time low of 59.13 against the US dollar on Tuesday, down from 58.90 on Monday, reflecting the weakness of regional currencies affected by US tariffs.
Analysts attributed the peso’s depreciation to concerns that the 19-percent average tariff imposed by the US on Philippine products would hurt exports in the coming months.
The Bangko Sentral ng Pilipinas (BSP) said the peso’s depreciation may also reflect market concerns over a potential economic growth moderation, partly due to the infrastructure spending controversy and expectations of additional monetary policy easing.
The BSP said in a statement Tuesday that it allows the exchange rate to be determined by market forces. “When we do participate in the market, it is largely to dampen inflationary swings in the exchange rate over time rather than to prevent day-to-day volatility,” it said.
