Share prices rose Tuesday on increased risk appetite as investors positioned ahead of a highly anticipated rate cut.
The peso closed up. The peso was among the top Asian emerging currencies on Tuesday due to fading chances of an imminent interest rate cut, while other currencies also gained ground as the dollar held steady, Reuters reported.
The Philippine Stock Exchange index went up was 37.08 points to 6,650.44, a 0.56 percent hike.
The broader All Shares index was up 11.46 points or 0.32 percent to 3,610.
Losers edged gainers 100 to 81 with 64 stocks unchanged. Trading turnover reached P4.98 billion.
The peso closed at 56.96 to the dollar, up from 57.316 on Monday. The currency opened at 57.25, and hit a high of 56.92 and a low of 57.295. Trading turnover reached $1.8 billion.
The country’s inflation unexpectedly accelerated to a nine-month high, data showed last week, and the central bank governor Eli Remolona said there was space to keep monetary policy tight until inflation is tamed.
That could likely mean the central bank will not lower rates when it meets on August 15, said Ruben Carlo Asuncion, chief economist at the Union Bank of Philippines.
Japhet Tantiangco, analyst at Philstocks financial Inc., said the appreciation of the peso helped to boost confidence in the local stock market.
“Investors’ appreciation of corporate results also helped in bringing the market up,” he said.
Most actively traded International Container Terminal Services Inc. was up P2 to P367. BDO Unibank Inc. was down P0.60 to P139. Universal Robina Corp. was down P3.80 to P96. Manila Electric Co. was up P9.60 to P399.60. DigiPlus Interactive Corp. was up P0.90 to P18.90. Gt Capital Holdings Corp. was up P28 to P620. JG Summit Holdings Inc. was down P1.05 to P24.15. SM Investments Corp. was up P10 to P920. PLDT Inc. as up P6 to P1,600. Ayala Land Inc. was up P0.70 to P30.80.
