Share prices and the peso closed higher yesterday ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting this Thursday.
The Philippine Stock Exchange index (PSEi) was up 25.59 points to 6,299.05, a 0.42 percent hike. The broader All Shares index was up 33.32 points or 0.98 percent to 3,441.09.
Gainers edged losers 93 to 92 with 52 stocks unchanged. Trading turnover reached P4.17 billion.
The peso closed at 58.77 to the dollar, up from 58.80 on Monday. The currency opened at 58.73, hitting a high of 58.70 and a low of 58.777. Trading turnover reached $814.1 million.
The policymaking Monetary Board is scheduled to meet on Thursday. Rates are expected to remain unchanged for a sixth consecutive meeting, a Reuters poll showed.
Most emerging Asian currencies, however, inched higher against the dollar on Tuesday, with the South Korean won snapping a four-day losing run, as investors eyed key US economic data later in the week for clues on the Federal Reserve’s interest rate policy.
The US dollar index, which measures the greenback against a basket of major currencies, was trading slightly higher at 105.520 during late Asian hours, ahead of key inflation print due later in the week.
Weak US inflation data would likely reinforce market bets on a Fed rate cut as early as September — the odds of which are currently at about 65 percent — which could weigh on the dollar and, in turn, benefit riskier emerging Asian assets.
“A plethora of economic and political factors could challenge USD (dollar) dominance. But categorically taming the USD will be hard,” Vishnu Varathan, chief economist for Asia ex-Japan at Mizuho Bank, wrote in a note.
Meanwhile, the Japanese yen slipped to as low as 159.70 earlier in the day even as traders remained cautious of testing a key resistance level that had prompted currency intervention in April and May.
Elsewhere in Asia, the won gained as much as 0.4 percent, its first increase after four days, while the Chinese yuan dropped to a seven-month low of 7.2630.
Malaysia’s ringgit remained unchanged after data showed the country’s inflation for May came in slightly above the forecast.
“We do not expect the upside risks to inflation will likely warrant BNM (Bank Negara Malaysia) to move… (and) expect BNM to hold its policy rate steady at 3.0 percent this year,” said Yun Liu, Asean economist at HSBC.
Other Asian currencies like the Indonesian rupiah, Thai baht, Singapore dollar and Taiwanese dollar all were largely unchanged.
Philstocks Financial Inc. said investors continued to hunt for bargain stocks.
“Foreign investors were net buyers this session, recording a net inflow of P11 million after nine consecutive days of net foreign selling worth P4.45 billion,” it said in an investors’ note.
“Investors are also anticipating the BSP meeting this week for clues on the timeline of interest rate cuts,” it added.
Most actively traded International Container Terminal Services Inc. was up P15 to P346. Ayala Land Inc. was up P1.05 to P28.75. BDO Unibank Inc. was up P1 to P129. SM Investments Corp. was down P12.50. SM Prime Holdings Inc. was up P0.15 to P27.15. Aboitiz Equity Ventures Inc. was down P1.20 to P37.40. PLDT Inc. was up P10 to P1,370. GT Capital Holdings Corp. was down P8 to P566. Philippine Seven Corp. was up P0.10 to P131.70. Globe Telecom Inc. was up P33 to P2,008.
