PSEi rallies to 6,700 level as peso strengthens

The main index rallied on Thursday to end at the 6,700 level for the first time since April amid a strengthening peso and positive economic prospects for the Philippines.

The benchmark Philippine Stock Exchange index (PSEi) rose by 0.25% or 17.30 points to finish at 6,705.01 on Thursday, while the broader all-shares index climbed by 0.22% or 8.24 points to end at 3,602.86.

This was the PSEi’s best close since April 29’s 6,769.64 and was the first time it ended at the 6,700 level since the 6,700.49 finish recorded on April 30.

“The local market extended its climb as investors cheered the continuous improvement of the peso against the dollar… The bourse closed above the 6,700 resistance level after testing it in the past few days,” Philstocks Financial, Inc. Research and Engagement Officer Mikhail Philippe Q. Plopenio said in a Viber message.

After hitting 17-month lows last month amid bets on the timing of monetary easing here and in the United States, the peso has since rebounded against the dollar.

On Thursday, the local unit rose for a third straight day, closing at PHP 58.25 versus the greenback, Bankers Association of the Philippines data showed. This was 4.5 centavos stronger than its PHP 58.295 finish on Wednesday and marked the peso’s best close since May 28’s PHP 57.97.

“Also, the Asian Development Bank’s (ADB) projection of the Philippines’ leading the ASEAN (Association of Southeast Asian Nations) region together with Vietnam in terms of economic growth for 2024 and 2025 cheered up investors,” Mr. Plopenio said.

The ADB on Thursday said it expects Philippine gross domestic product (GDP) to grow by 6% this year, at the low end of the government’s 6-7% target. For 2025, the ADB sees Philippine GDP expanding by 6.2%, below the government’s 6.5-7.5% goal.

“Philippine shares continued to rally as regional stocks moved out of the tech-driven firms. Analysts worry that this shift may not protect stocks from potential economic slowdown challenges,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan added in a Viber message.

Sectoral indices were mixed. Financials climbed by 2.55% or 50.90 points to 2,045.25; industrials went up by 0.56% or 51.53 points to 9,222.91; and services rose by 0.26% or 5.30 points to 2,030.09.

Meanwhile, mining and oil fell by 1.79% or 160.97 points to 8,803.27; holding firms went down by 1.13% or 66.39 points to 5,765.43; and property declined by 0.64% or 17.27 points to 2,670.53.

Value turnover rose to PHP 4.61 billion on Thursday with 1.08 billion shares changing hands from the PHP 4.22 billion with 694.38 million stocks traded on Wednesday.

Decliners beat advancers, 89 versus 80, while 59 issues were unchanged.

Net foreign buying dropped to PHP 385.96 million on Thursday from PHP 715.58 million on Wednesday. — RMDO