PSEi returns above 6,000, peso back at 60:$1 level

MANILA, Philippines — Local share prices made their way back above the 6,000 mark yesterday despite the country’s first quarter gross domestic product (GDP) growth coming in below expectations, as investors chose to focus on positive developments abroad.

At the same time, the peso climbed back to the 60-per-dollar territory as softer oil prices and a weaker greenback supported the local currency.

The main 30-company Philippine Stock Exchange index (PSEi) surged by 1.12 percent or 67.06 points to close higher for a second straight session at 6,034.27.

The broader All Shares index likewise finished strong at 3,396.41, up by 0.98 percent or 32.96 points, as all sectoral indexes ended in the green.

Data from the Bankers Association of the Philippines, meanwhile, showed that the peso closed at 60.42 per dollar yesterday, stronger by 88.5 centavos from Wednesday’s 61.305 finish.

Trading volume rose by 64.4 percent to $2.4 billion from $1.46 billion in the previous session, reflecting heavier market activity as the peso recovered.

“The pair tracked the lower dollar and oil prices on reports of easing tensions in the Middle East,” a trader said.

The rebound pulled the peso away from its recent record lows above 61 per dollar, although the currency remained under pressure from external risks, including the outlook for US interest rates, oil prices and global investor sentiment.

Philstocks Financial research manager Japhet Tantiangco said the local stock market extended its rise as hopes that the US and Iran would come to an agreement soon continued to lift sentiment.

“This comes amid reports that the two are closing in on a memorandum to end the war,” Tantiangco said.

“The said hopes for the US and Iran overshadowed the dismal first quarter GDP data released today,” he also said.