MANILA – News about an investor buying deposits and loans of collapsed Silicon Valley Bank (SVB) lifted sentiments, resulting in the recovery of the local bourse’s main index on Tuesday, but the peso ended weaker.
The Philippine Stock Exchange index (PSEi) rose by 0.12 percent, or 8.12 points, to 6.603.15 points.
All Shares followed with a jump of 0.16 percent, or 5.79 points, to 3,519.86 points.
Four of the six sectoral indices tracked the main stock market gauge – Mining and Oil, 2.10 percent; Services, 1.69 percent; Industrial, 0.25 percent; and Property, 0.02 percent.
On the other hand, Financials slipped by 0.69 percent and Holding Firms by 0.21 percent.
Volume reached 911.1 million shares amounting to PHP5.34 billion.
Decliners led advancers at 95 to 78 while 41 shares were unchanged.
"Philippine shares reclaimed its position above 6,600 as traders digested a few positive news reports, including First Citizens Bank shares’ agreement to buy large parts of Silicon Valley Bank," said Luis Limlingan, Regina Capital Development Corp. head of sales.
He said investors are also awaiting the release of several economic reports from the United States, such as the home price data and The Conference Board’s consumer confidence report.
On the local front, Limlingan said investors are all eyes on the latest banking data, as well as the window dressing in the local equities market by the end of this quarter.
He said oil prices increased "after Iraq was forced to halt some of its crude exports from its semi-autonomous Kurdistan region and helped by steps to contain a potential banking crisis that could have hit oil demand."
Limlingan said Brent crude futures rose by 4.17 percent to USD78.12 per barrel and the West Texas Intermediate (WTI) by 5.24 percent to USD72.89 per barrel.
Meanwhile, the peso weakened against the US dollar and closed the day at 54.45 from 54.29 on Monday.
It opened the day at 54.25 and traded between 54.5 and 54.25, averaging 54.376.
Volume rose to USD1.64 billion from the previous session’s USD1.08 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso’s weakness to correction partly due to the rise in the prices of oil in the international market to its two-week highs, the improvement in investors' appetite after the news that First Citizens Bank & Trust would buy all deposits and loans of SVB, and the hawkish signals from some Federal Reserve officials.
Ricafort forecast the peso to trade between 54.35 and 54.55 against the greenback on Wednesday. (PNA)