Stocks extend gains despite fresh peso low

MANILA, Philippines —  Philippine financial markets moved in opposite directions yesterday ahead of the Bangko Sentral ng Pilipinas (BSP)’s policy meeting, with local shares extending their winning streak on bargain hunting while the peso sank to a fresh record low against the dollar.

The benchmark Philippine Stock Exchange index (PSEi) rose by 0.26 percent or 15.34 points, closing at 5,821.51. It has now recorded five consecutive sessions of gains.

The broader All Shares index likewise inched up by 0.14 percent or 4.43 points, settling at 3,238.61.

The peso closed at 63.361 per dollar yesterday, weaker by 27.1 centavos from Tuesday’s previous record low of 63.09. It opened at 63.01, briefly strengthened to 63, then weakened to as much as 63.373 during the session, also marking a fresh intraday record low.

Jash Matthew Baylon, equity trader at The First Resources Management and Securities Corp., said the PSEi extended its recovery momentum after successfully defending support at the 5,500 level in recent sessions.

Baylon said positive spillovers from overnight gains on Wall Street and strength across Asian peers provided strong tailwinds for local equities.

Further, he said investors continued to accumulate shares ahead of third-quarter earnings disclosures, buoyed by strong corporate results in the US that reinforce expectations for resilient domestic corporate performance.

“However, upside gains were capped as market participants maintained a cautious stance ahead of the BSP monetary policy decision,” he said.

Sectoral gauges were a mixed bag, with services recording the largest gain at 1.53 percent, while financials lost the most at 0.61 percent.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said risks of further interest rate increases by the US Federal Reserve continued to keep the dollar-peso exchange rate elevated, while investors were also positioning ahead of the BSP decision.