MANILA – Both the Philippine Stock Exchange index (PSEi) and the peso finished Tuesday with gains even as investors contemplate how a souring of US-Saudi relations over the presumed murder of journalist Jamal Khashoggi can shake world markets, particularly the world crude market.
PSEi gained 0.87 percent, or 60.51 points, to 6,987.02 points, which Landbank market economist Guian Dumalagan partly attributes to shift of investors’ focus.
Reports said the journalist was last seen entering the Saudi consulate in Istanbul two weeks ago before vanishing without a trace. Leaders of several countries, including US President Donald Trump, has called for “credible investigation” on the issue.
“Foreign groups prefered to focus on the theory that the killing of Kamal was linked to rogue agents interrogation that went wrong,” Dumalagan said.
All the other counters in the local bourse managed to rise during the day, with the broader All Shares up by 0.31 percent, or 13.13 points, to 4,289.71 points.
Industrial led the sectors with a jump of 1.47 percent and was followed by the Property, 1.10 percent; Mining and Oil, 1.04 percent; Financials, 0.90 percent; Services, 0.40 percent and Holding Firms, 0.12 percent.
Volume remained thin at 425.55 million shares amounting to PHP4.75 billion.
Gainers led losers at 100 to 83 while 51 shares were unchanged.
Also, the peso strengthened and finished the day at 53.96 from 54.08 a day ago.
Dumalagan said improvement in the local bourse helped buoy the peso during the day.
“There were bets, I think, that inflation may soon taper off and the real interest rate differential would improve,” he added.
UnionBank chief economist Carlo Asuncion said the local currency has been regaining strength after the Bangko Sentral ng Pilipinas (BSP) last rate hike in September, which brought the total increase to 150 basis points to date.
“It seems that the general perception about inflation is that the peak has already been reached,” he said, adding that “government’s response in addressing supply-side issues of inflation seem to be working, and global prices of oil have recently declined.”
For the day, the peso opened the day at 54.03, better than the 54.12 a day ago.
It ranged between 54.09 and its closing level, resulting to an average of 54.044.
Volume reached USD777.8 million, higher than day-ago’s USD528.9 million. (PNA)
