Bargain-hunting and positive earnings results allowed the stock market to post a rebound on Tuesday, but the peso fell for a second straight trading day.
The currency weakened by 12 centavos to P58.15 while the benchmark Philippine Stock Exchange index (PSEi) added 101.48 points, or 1.69 percent, to end the day at 6,094.96.
The broader All Shares also rose, by 67.78 points or 1.88 percent, to 3,678.94.
The peso opened at the day’s trading low of P58.08:$1 and rose to as high as P58.285. Volume for the day was P1.667 billion, higher than Monday’s P1.164 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened as the dollar continued to strengthen against major global currencies.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “the local market bounced back this Tuesday as investors hunted for bargains after two consecutive days of decline.”
“Optimism [over 2024] corporate results also helped in driving the market higher following sound earnings reports” Bank of the Philippine Islands, Asia United Bank and SM Prime Holdings Inc., he added.
“Also helping in Tuesday’s trading was the overseas Filipinos’ cash remittance data for 2024 which posted a 3 percent increase,” he continued.
The day’s trading, however, was said to be tepid with net value turnover at P4.74 billion, below the year-to-date average of P5.21 billion.
“Foreigners were net sellers with net outflows at P199.76 million,” Tantiangco added.
DragonFi Securities, Inc. equity research analyst Jarrod Tin, meanwhile, said that “a strong oversold bounce” led by Ayala Land Inc. and SM Prime had boosted the market.
“The market appeared to pause from heavy selling, lacking cues from the US market due to its trading holiday,” he said, adding that “we expect PSEi to maintain a cautious stance until a clear catalyst emerges.”
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “Philippine shares closed higher as investors welcomed the signing of the IRR (implementing rules and regulations) on corporate tax cuts.”
All sector indices but one closed in the green, with property up the most by 3.32 percent. Mining and oil was the sole decliner, down 0.17 percent.
On a company basis, gainers outnumbered decliners, 101 to 72, while 64 were unchanged.