The stock market and the peso went in the opposite direction on Tuesday, with the currency falling by one and a half centavos, while the underlying index showed a slight increase.
The Philippine Stock Exchange Index (PSEi) added 26.41 points, or 0.41 percent, to 6,429.65, while the broader All Shares index rose 4.19 points, or 0.12 percent, to 3,390. fifteen.
The peso, meanwhile, closed at 57.375 pesos to the dollar from 57.36 the previous day: $1.
Filstox Finance Inc. Researcher Claire Alviar said net foreign purchases of 289.03 million pesos helped lift the index as investors sought refuge from the possibility that China could reinstate pandemic restrictions.
Deaths from Covid-19 in China, Capital Development Corp. Managing director Louis Limlingan said it “has raised concerns among investors that the country could bring back restrictions designed to slow the spread of the virus.”
Rizal Commercial Banking Corp. Meanwhile, chief economist Michael Ricafort noted that stock prices corrected slightly higher after global crude oil prices recently fell to new 1.5-month lows amid ongoing lockdowns in China, the world’s largest importer of oil and other major world goods.
On the peso, Ricafort said that “the peso exchange rate has remained relatively stable/stronger for the 9th consecutive week, below the all-time high/psychological level of 59.00. [hit last month].
Tuesday’s close was still “one of the strongest for the peso in two months,” he added.
Meanwhile, sectoral indices ended the day mixed, with financials up the most at 0.83 percent, while mining and oil fell 1.76 percent.
Nearly 526 million shares worth 5.39 billion pesos changed hands.
There were more declines than rises, from 117 to 78, while 41 remained unchanged.
With AIRIN AIRIN JAIRY GOMEZ