Index weakens on profit taking

MANILA, Philippines - Investors took profits yesterday, dragging the stock barometer 16.51 points lower at 7,601.4 while the broader All Shares index also lost 8.69 points, or 0.19 percent, to end at 4,532.92.

Total value turnover reached P7.13 billion.

Decliners outnumbered advancing stocks, 118 to 87 while 47 issues were left unchanged.

Meanwhile, the peso continued to strengthen yesterday, gaining another seven centavos to hit its strongest level in almost three months after recovering back to the 49 to $1 the other day amid improving investorss sentiment.

The local currency closed at 49.635 to $1 from Monday’s 49.705 to $1. This was the strongest level for the peso in almost three months or since closing at 49.48 to $1 last Jan. 12.

It opened stronger at 49.64 and appreciated further to 49.605. The peso hit an intraday low of 49.75 to $1.

Volume yesterday normalized at $577 million from Monday’s heavy exchange volume of $1.12 billion.

Land Bank of the Philippines market economist Guian Angelo Dumalagan said the appreciation of the peso back to the 49 to $1 level could be attributed to the optimism of foreign investors.

“It might also be a reflection of foreign investors renewed interest in the Philippines, as evidenced by the surge in local stocks in the past few days,” he said.

Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo earlier said the appreciation of the peso against the dollar could be traced to the country’s sound macroeconomic fundamentals. – With Lawrence Agcaoili