Manila Sees Positive Economic Signals as Peso and Stocks Surge

At the close of the trading week, the Philippine financial market exhibited encouraging signs, with both the peso and the stock market ending on a high note. The peso saw a modest increase, strengthening by one centavo to P55.38 against the US dollar. This upswing was mirrored in the Philippine Stock Exchange index (PSEi), which gained 23.3 points, or 0.37%, culminating in a finish of 6,269.50. Additionally, the broader All Shares index also rose by 0.61%, adding 20.21 points to reach 3,348.22.

The opening trading rate for the peso was P55.35 to $1, fluctuating between P55.3 and P55.49 throughout the day. The trading session closed with a higher volume of P1.189 billion, surpassing the previous session’s P1.066 billion.

Economic experts offered insights into these positive trends. Michael Ricafort, Chief Economist at Rizal Commercial Banking Corp., attributed the peso’s strength to hawkish signals from local monetary authorities and a slight weakening of the dollar. Claire Alviar, a research associate at Philstocks Financial Inc., credited the PSEi’s rise to the strengthened peso against the dollar. She also highlighted robust auto sales in October, which signified resilient consumer demand despite high inflation and elevated interest rates. The pause in the Israel-Hamas war also played a role in boosting market sentiment, according to Alviar.

In terms of trading dynamics, Luis Limlingan, Managing Director at Regina Capital Development Corp., noted that local shares traded quietly during the session. However, investors later engaged in bargain hunting, spurred by expectations of a boost in the US economy from Black Friday sales.

The sectoral results were mixed. The property sector led the gainers with a 1.18% increase, while the industrial sector experienced the most significant drop, falling by 0.24%. The trading session saw over 445.7 million shares, valued at approximately P2.68 billion, change hands. In the day’s tally, decliners outnumbered advancers, 94 to 78, with 51 remaining unchanged.