Share prices ended higher Monday as investors turned to the local bourse amid concerns overseas.
The Philippine Stock Exchange index (PSEi) was up 37.29 points to 6,960.89, a 0.54 percent hike.
The broader all shares index was up 21.68 points to 4,348.19, 0.5 percent hike.
Gainers and losers were both at 93 with 55 stocks unchanged. Trading turnover reached P5.61 billion.
The peso closed at 50.70 to the dollar, up from 50.79 on Friday. It opened at 50.74, hitting a high of 50.68 and a low of 50.815. Trading turnover reached $857.54 million.
News that China Evergrande shares were suspended on Monday after the embattled developer missed a key interest payment on an offshore bond for the second time last week kept a lid on Asian currency gains, Reuters reported.
The Indonesian rupiah and Malaysian ringgit advanced 0.2 percent each against the dollar, while the region’s other currencies were little changed on the day.
Expectations that elevated inflation could prompt the Federal Reserve to bring forward its tapering timeline also weighed on emerging market currencies.
Data on Friday showed core US PCE price index, the Federal Reserve’s preferred inflation measure for its flexible 2 percent target, increased 3.6 percent in August from a year earlier, its biggest rise in three decades.
Rising commodity prices and ongoing supply disruptions have also fuelled expectations global inflation could stay higher for longer.
“The market has priced in the start of taper, but probably not the full impact of it depending on the pace,” analysts at OCBC said.
Investors will next focus on the release of US labor data this Friday. Before then, markets will eye a speech by US Trade Representative Katherine Tai later on the Biden administration’s long-awaited China trade strategy.
Luis Limingan, managing director at Regina Capital and Development Corp., said Philippine shares “were traded higher as investors sought refuge from regions being sold down due to the Evergande debacle.”
“Investors are also waiting on the release of the trade balance data, PMI, jobless claims, and unemployment rate this week in the US as the last trading quarter of 2021 is underway,” Limlingan said.
He added investors will be digesting in the next couple of days, the report on the September inflation set to be released today, and the August industrial production data that will be out Thursday.
Most actively traded Converge Information and Communication Technology Solutions Inc. was up P0.05 to P40. AC Energy Corp. was up P0.30 to P11.92. DMCI Holdings Inc. was up P0.41 to P7.70. Monde Nissin Corp. was up P0.26 to P19.06. Semirara Mining and Power Corp. was up P1.65 to P23.95. MREIT Inc. was up P0.70 to P17.40. PLDT Inc. was up P52 to P1,692. Robinsons Retail Holdings Inc. was up P2.65 to P55.25. Ayala Corp. was up P10.50 to P828. 8990 Holdings Inc. was up P0.76 to P10.76.
