Higher foreign reserves, US rally back PSEi, peso trading Tuesday

By Kris Crismundo

November 21, 2023, 8:27 pm

MANILA – The increase in the country’s foreign reserves and the overnight rally in the US markets supported the local stocks and currency on Tuesday’s trade.

The benchmark Philippine Stock Exchange index (PSEi) closed the day 25.20 points, higher than Monday’s finish, at 6,208.83, with the broader All Shares ending in the green territory at 3,314.60 points.

“The index returned above the 6,200 level as a relatively benign market environment, an overnight rally in US shares, and favorable auction of 20-year US Treasuries spurred bargain hunting in local equities,” China Bank Capital Corp. managing director Juan Paolo Colet said.

Colet added that the 6,200 to 6,250 level is a strong resistance zone thus, the need for the local bourse “to see more buying at these levels to build a case for a fresh rally.”

Sectoral indices were mixed, with counters of Industrial, Financials, and Services closing in the green, while Property, Mining and Oil, and Holding Firms finishing in the red.

“The positive sentiment was further fueled by the recorded surplus in the Philippines’ balance of payments (BOP) in October, indicating potential support for the peso, which has been gaining strength recently against the US dollar,” Philstock Financials, Inc. assistant research manager Claire Alviar added.

The central bank reported Monday that gross international reserves as of end-October 2023 rose to USD101 billion.

Alviar said the net market value turnover reached PHP3.8 billion.

“Among the index members, Jollibee Foods Corporation gained the most, increasing by 4.85 percent while Wilcon Depot, Inc. was at the bottom, dropping by 2.31 percent,” she added.

Meanwhile, the Philippine peso further gained strength closing the day at PHP55.39 to a US dollar, stronger by PHP0.16 than Monday’s PHP55.55 finish.

It opened the day at PHP55.43, which is already its highest level during Tuesday’s trading, before gaining strength at the PHP55.34 level.

The weighted average level for the day stood atPHP55.38 to the greenback.

The volume of trade improved to USD1.6 billion from USD1.51 billion in the previous day. (PNA)