The peso is approaching P54:$1; PSEi rebounds

The peso approached the P54:$1 mark on Monday while the stock market also rebounded to post a strong start to the week.

The currency gained 53 centavos to close at P55.11 against the US dollar, posting gains for the third day in a row.

Meanwhile, the Philippine Stock Exchange Index (PSEi) recovered from Friday’s drop of 1.38 percent by gaining 122.27 points, or 1.83 percent, to close at 6,790.24.

The broader All Shares index followed, up 55.90 points, or 1.59 percent, to 3,568.97.

The positive sentiment abroad spilled over into domestic markets, said Rastin Mercado, head of research at the Bank of China Securities.

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“Optimism continues to run high given expectations of a slowdown in rate hikes by the US Federal Reserve and better prospects for China and Asia,” Mercado said.

“The market is now within striking distance of the 6,800-6,850 resistance, which coincides with the threshold for bull market territory (20% up from recent lows around 5,700 in early October 2022).

Meanwhile, Claire Alvear, researcher at Philstocks Financial Inc, said, “US investors reacted positively after the US non-manufacturing PMI contracted, tempering expectations of a rate hike this year.”

Domestically, “foreigners also helped lift the market as it recorded a net inflow of 283.83 million pesos.”

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the sharp decline in global crude oil prices, the strengthening of the peso and the government’s plan to return to the offshore bond market all helped lift market sentiment.

The peso opened the day at P55.30: $1 and traded ranged from P55.09 to P55.32. Total trading volume was $1,219.55 billion, up from $1,052.37 billion on Friday.

Meanwhile, all of the sectoral indices closed in the green with mining and oil gaining 3.05 percent.

2.46 billion shares were traded, worth 6.40 billion pesos

The winners outnumbered the losers, 148 to 47, while 43 remained unchanged.

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