Share prices closed higher yesterday tracking overseas leads.
The peso was also up.
The Philippine Stock Exchange index rose 11.91 points, a 0.19 percent hike to 6,264.07.
The broader All Shares index was up 6.22 points or 0.18 percent to 3,386.27.
Gainers edged losers 96 to 77 with 50 stocks unchanged. Trading turnover reached P4.54 billion.
The peso closed at 56.82 to the dollar, up from 56.95 on Monday.
The currency opened at 56.90 and hit a high of 56.82 and a low of 56.92. Trading turnover reached $1.05 billion.
Currencies retreated as the ongoing conflict in the Middle East and high oil prices dampened investor risk sentiments despite the fact US Federal Reserve officials suggested a softer outlook for interest rates, Reuters reported.
Comments from two Fed officials on Monday signalling a slight dovish shift in the Fed’s interest rate outlook provided some relief to Asian assets, including equities, as the dollar slipped and US Treasury yields eased.
Fakhrul Fulvian, economist at Trimegah Securities, said the move in equities was mostly related to somewhat lower US Treasury yields. However, he added caution will remain in the medium term for equities, noting that the current gain could be a one-off sentiment.
Meanwhile, market participants were worried the conflict in the Middle East, which has pushed up oil prices, could create additional inflationary pressures for Asian emerging market countries, which are net oil importers.
“There are possible risks that oil prices could rise significantly higher should the situation escalate further,” said Poon Panichpibool, markets strategist at Krung Thai Bank.
“In such a scenario, I would expect currencies of net energy importers to be under pressure.”
Most Asian currencies retreated, with the Indonesian rupiah depreciating 0.2 percent to hit its lowest level since December 29.
The Israeli shekel was trading at 3.9411 per dollar, almost flat from the prior session but hovering at an almost eight-year low.
Investors also await a slew of economic data during the week, including inflation data from India and China.
Juan Paolo Colet, managing director at China Bank Capital Corp., attributed yesterday’s uptick to the remarks by top Federal Reserve officials overnight that indicate a potential pause in rate hikes if US bond yields remain elevated.
“The recovery in investor sentiment was also helped by the strong Philippine export print in August,” he said.
Most actively traded Aboitiz Power Corp. was up P0.90 to P36.60. ACEN Corp. was up P0.01 to P5.39. Semirara Mining and Power corp. was up P1.40 to P36.65. Ayala Land Inc. was down P0.15 to P28.55. Universal Robina Corp. was down P0.90 to P117.90. SM Prime Holdings Inc. was up P0.45 to P31. BDO Unibank Inc. was up P0.10 to P139.30. Jollibee Foods Corp. was up P7 to P226. Converge ICT Solutions Inc. was up P0.34 to P10.22. Metropolitan Bank and Trust Co. was down P0.20 to P51.70.
