Market recovers, peso hits new low

MANILA, Philippines — The stock market recovered yesterday as investors sought bargain stocks after several days of sustained decline due to heavy selling, analysts said.

The bellwether Philippine Stock Exchange index (PSEi) improved by 1.51 percent, or 84.95 points, to settle at 5,714.02, slightly recovering from its drop to a fresh five-year low on Tuesday.

The broader All Shares index also rose by 0.96 percent, or 33.26 points, to close at 3,498.87.

Regina Capital Development Corp. head of sales Luis Limlingan said investors  gobbled up cheaper stocks to reorganize their portfolio in a dismal market. The PSEi  is expected to hit new lows again on slower-than-expected  gross domestic product growth.

“The PSEi rebounded as investors engaged in bargain hunting after several days of heavy selling. The recovery came despite the peso’s weakening to the 59-to-$1 level again, reflecting continued external pressure,” Limlingan said.

Total value turnover reached P6 billion, down from Tuesday’s P8.56 billion. Gainers outpaced  losers, 102 to 86, while 50 issues were unchanged.

Meanwhile, the peso depreciated to a new low yesterday, closing at  59.17 against the dollar amid market concerns over sluggish economic growth and governance issues.

Data from the Bankers Association of Philippines showed that the local currency dipped by 19 centavos from its 58.985 finish on Tuesday. This is higher than the close recorded on Oct. 28, when the peso reached a previous record low of 59.13 against the dollar.

The peso opened at 58.95 and reached its lowest level at 59.19.

Prior to the closing, it reached an intraday high of 58.91 before settling at 59.17 at the close of trading. – Marco Luis Beech