Stocks rise as peso strengthens back to 62:$1

MANILA, Philippines — Share prices continued their rise as investors cheered the  peso’s appreciation against the dollar and the outcome of the  US elections.

The benchmark Philippine Stock Exchange index rose by 1.46 percent, or 83.22 points, to close yesterday’s session at 5,778.14.

The broader All Shares index likewise jumped by 1.39 percent, or 44.32 points, settling at 3,229.47.

Philstocks Financial said the local market extended its rally, fueled mainly by the drop in global oil prices.

“This comes as the Democratic Party takes over the US Congress following their big win in the midterm elections. A Democratic Party-leaning Congress is expected to challenge the US’ war against Iran,” it said.

Further, Philstocks Financial said the local currency’s appreciation against the  dollar helped in the market’s rise.

Data from the Bankers Association of the Philippines showed the peso closed at 62.97 per dollar, gaining 56.5 centavos from Wednesday’s 63.535 finish. It was the peso’s strongest close since Oct. 14, when it settled at 62.87, and marked its fifth gain in six trading sessions.

RCBC chief economist Michael Ricafort attributed the peso’s recovery largely to the sharp decline in global oil prices.

Brent crude fell to around $95 per barrel, its lowest level in two months, from about $103 in the previous session and a recent peak of $118 on Oct. 30.

AP Securities, meanwhile, said local shares extended their rebound despite October inflation rising to 7.8 percent from 7.2 percent, driven by higher transport and utility costs.

Total value turnover reached P6.17 billion, slightly down from the previous day’s P6.95 billion.

Market breadth was positive as advancers crushed decliners, 122 to 74, while 56 issues did not change hands.

ICTSI was the top traded stock, finishing unchanged at P830 per share. Mynt followed, climbing 2.24 percent to P6.85, while Metrobank fell 3.17 percent to P61.