Philippine stocks closed higher Wednesday, buoyed by the local currency’s recovery from a record low and continued bargain-hunting by investors.
The peso rebounded to finish at 58.69 against the US dollar, recovering after hitting a new low ofP59.13 on Tuesday.
The bellwether Philippine Stock Exchange index (PSEi) added 10.61$points, or 0.18 percent, to close at 5,963.77. The broader all-shares index ended at 3,605.21, after gaining 15.70 points, or 0.44 percent.
Gains were trimmed later in the day as investors traded cautiously amid lingering concerns, particularly the impact of the Philippines’ corruption issues on the economic outlook.
Japhet Tantiangco, research head at Philstocks Financial Inc., noted that the market extended its gains as investors continued bargain hunting.
“Hopes of a rate cut by the Federal Reserve and a solid agreement between the US and China in their meeting this week gave the market a boost,” Tantiangco said.
“The peso’s rebound also helped in today’s session,” he said.
Trading volume remained low, with net value turnover at P4.67 billion. Foreign investors were net sellers, resulting in net outflows of P477.97 million.
Sectoral indices were mixed. The mining and oil Index rebounded strongly, surging 3.29 percent. The properties Index was the worst performer, declining 0.78 percent.
Market breadth was positive, with 110 advancers outpacing 74 decliners.
LT Group, Inc. was the top index gainer, climbing 5 percent to P14.70. Ayala Land Inc. was at the bottom, dropping 2.66 percent to P20.15.
