THE peso edged down on Wednesday while the stock market strengthened ahead of Friday’s release of September inflation data.
The currency, which weakened by 3.3 centavos to P56.178 against the dollar, opened at P56.38:$1 and ranged from P56.03 to P56.42. Volume reached P1.954 billion, lower than Tuesday’s P2.217 billion.
The benchmark Philippine Stock Exchange index (PSEi), meanwhile, added 22.49 points, or 0.31 percent, to end the day at 7,402.81.
The broader All Shares index also rose by 7.50 points, or 0.19 percent, to 3,970.86.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said: “Investors bought into the market on the back of expectations that inflation last September further slowed down.”
“Investors also cheered the September S&P Global Philippines Manufacturing PMI (purchasing managers’ index), which came in at 53.7, reflecting a faster expansion of the manufacturing sector compared to the preceding month,” he added.
“Trading was lethargic, however, with net value turnover posting P4.06 billion, lower than the year-to-date average of P5.19 billion,” Tantiangco continued, while foreigners were still net buyers with net inflows of P540.05 million.
Regina Capital Development Corp. Managing Director Luis Limlingan said that “Philippine shares still managed to eke out gain despite rising Middle East tensions weighing on investor sentiment, while the International Longshoremen’s Association strike on the East and Gulf coasts could cost the [US] economy hundreds of millions of dollars.”
“The PSEi continued after a huge slide to end 3Q (third quarter), supported by potential Fed rate cuts and optimism over further slowing inflation in September,” he added.
Sector indices were mostly higher, with mining and oil sector gaining the most by 2.17 percent. Industrial and property fell by 0.70 percent and 0.12 percent, respectively.
Decliners outnumbered gainers, 114 to 91, while 56 listed firms saw share prices end the day unchanged.
