MANILA: Risk-on sentiments prevailed in local markets at the start of the trading week, lifting the Philippine Stock Exchange index (PSEi) and helping the peso keep its ground amid an invigorated US dollar.
The main equities gauge rose 1.18 percent, or 84.64 points, to 7,236.16 points, which Landbank market economist Guian Dumalagan traced to positive sentiments ahead of the earnings season.
“Investors brushed off the weaker performance of the US stocks as this was due to the lower than expected housing data, overshadowing solid corporate earnings,” he said.
Dumalagan also cited Bank of England (BOE) Governor Mark Carney’s statement, saying that the UK banking system has “more than adequate capital to maintain lending to households and businesses” amid a disorderly Brexit. Carney based his statement on the results of a stress test.
Another plus for the PSEi is the rise of global oil prices, due in part to uptick of demand from China, despite expectations for another week of price slide due to higher US inventories and trade concerns.
PSEi’s uptick was tracked by All Shares, which inched up by 0.90 percent, or 39.08 points, to 4,398.73 points.
Most of the sectors also ended the day with gains, led by Financials, 1.74 percent. It was followed by Holding Firms, 1.49 percent; Property, 0.68 percent; Industrial, 0.53 percent; and Services, 0.29 percent.
Only Mining and Oil finished on the red after it declined by 1.17 percent.
Volume reached 688.55 million shares amounting to PHP4.45 billion.
Advancers led decliners at 107 to 83 while 38 shares were unchanged.
Also, the peso finished the day at 53.79 from 53.7 to the greenback at the end of last week.
A trader pointed this to wait-and-see stance on developments overseas such as the trade war.
For the day, the peso opened at 53.74, better than its 54.02 start Friday last week.
It traded between 53.805 and 53.65, resulting to an average of 53.733.
Volume reached USD863.4 million, lower than the USD905.02 million previously.
