MANILA -- Both the Philippine Stocks Exchange index (PSEi) and the peso started the week with gains amid the wait-and-see stance created by an anticipation of major economic data releases later this week.
After the long weekend, the Philippine Stock Exchange index (PSEi) gained further after it rose by 1.02 percent, or 73.15 points, to 7,213.44 points.
Regina Capital Managing Director Luis Limlingan noted investors’ bullishness, boosted in part by the higher-than-expected rise of US non-farm payroll last October to 250,000 against expectations of an increase of 200,000.
Wages also posted a hike after it grew by 3.1 percent, the first after the latest recession in the world’s largest economy.
Limlingan said investors are also monitoring developments on US’s upcoming mid-term elections.
He also said that “(Chinese president) Xi (Jinping is) expected to address trade differences at Shanghai Import Expo.”
“Speculators believe Xi may unveil some big-ticket industrial orders at the event,” he said, adding that “the world’s biggest exporter said it wants to boost imports to meet domestic demand and reduce the trade surplus.”
With these factors, all the other indices ended with gains, with the broader All Shares up by 0.48 percent, or 20.99 points, to 4,391.45 points.
The sectors were led by the Services, 1.64 percent; and was followed by the Mining and Oil, 1.23 percent; Holding Firms, 1.16 percent; Industrial, 1.13 percent; Property, 0.44 percent; and Financials, 0.21 percent.
Volume reached 2.82 billion stocks and the amount surged to PHP22.57 billion.
Gainers led losers at 100 to 93 while 44 shares were unchanged.
Bank of the Philippine Island (BPI), in its daily market report, said the local bourse “bucked regional trend” ahead of the release of October's domestic inflation figures on Tuesday.
Relatively, the peso ended the trade at 53.22 from 53.535 Wednesday last week. There was no trading last Thursday and Friday, November 1 and 2, due to the commemoration of the All Saints’ Day and All Souls’ Day.
BPI attributed the peso’s strength to drop in global oil prices, which fell to USD62.79 a barrel on Monday “as supply concerns eased given higher-than-expected US crude stockpiles and the US softening sanctions on Iran.”
“Last week, White House announced to grant temporary waiver to eight countries allowing them to continue importing Iranian crude,” it added.
For the day, the local unit opened at 53.27. It traded between 53.31 and its closing level, resulting to an average of 53.269.
Volume reached USD742.25 million.
The peso is seen to trade between 53.15-53.35 to the greenback Tuesday. (PNA)
