Stocks snap out of 4-day slump

MANILA, Philippines — A generally upbeat sentiment around Asia and record highs on Wall Street pushed the local index back to the 6,900 level yesterday, halting four straight sessions in the red.

The 30-company Philippine Stock Exchange index or PSEi finished at 6,913.87, gaining 78.95 points or 1.15 percent, while the broader All Shares index added 35.48 points or 0.84 percent to close at 4,270.02.

“The local market tracked the US markets’ rebound and climbed back to the 6,900 level,” AB Capital Securities said in a commentary.

“The PSEi recovered above the 6,900 level led by large-cap holding and property issues, although total trading volumes, excluding block sales, remain below the average with just P4.59 billion for the session. This shows that there was less selling pressure and that normal buying was able to take prices significantly higher,” said Chris Mangun of AAA Southeast Equities.

He said investors also welcomed Bangko Sentral chief Benjamin Diokno’s statement that the weakness of the peso was not a cause for worry at the moment, and that they are ready to step in and tame any sharp depreciation to stabilize it.

The peso breached past 50 to the US dollar last Friday, its weakest in over a year, as demand for dollars grows with increased imports due to increased spending and consumption in the months leading to the national elections.

Mangun said the volatility of the currency is one of the main concerns right now due to its direct effect on the economy.