THE peso plunged to a new record low of P61.567:$1 on Wednesday as oil price prospects remained clouded amid a lack of progress in peace talks between the United States and Iran.
The benchmark Philippine Stock Exchange index (PSEi), however, snapped a five-day decline due to bargain-hunting, with sentiment said to have also been lifted by likely lower oil prices following the United Arab Emirates’ decision to leave the Organization of the Petroleum Exporting Countries.
It closed 41.10 points, or 0.70 percent, higher at 5,907.89 and the broader All Shares gained 23.20 points — also 0.70 percent — to 3,343.60.
The peso, meanwhile, weakened by 26.7 centavos from Tuesday’s previous record low of P61.3:$1. It opened at P61.2:$1 and ranged from P61.2 to P61.67.
Volume reached P1.608 billion, down from Tuesday’s P1.749 billion.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said uncertainty was keeping oil prices high and sustaining demand for safe-haven assets.
Depreciation risks are around the P62 to P62.50 level in the near term, he added.
A trader, meanwhile, said the peso continued to weaken due to a stronger dollar.
“This phenomenon has been bolstered as market participants continue to anticipate a further timeline before the Fed (US Federal Reserve) could resume its cutting cycle, which is currently pegged at December 2027,” he added.
Meanwhile, Regina Capital Development Corp. head of sales Luis Limlingan said the PSEi’s rebound was driven by bargain hunting, with optimism over potentially lower fuel prices helping support equities.
Philstocks Financial Inc. research manager Japhet Tantiangco said the market gained as investors took advantage of lower valuations.
Rizal Commercial Banking Corp. chief economist Michael Ricafort noted that easing geopolitical tensions and expectations of a pause in US Federal Reserve policy tightening also provided support to sentiment.
Trading was active with net value turnover at P6.61 billion, above the year-to-date average, and foreign investors turned net buyers with inflows of P279.59 million, snapping a 12-day selling streak.
Sectoral performance was mixed, with services leading gainers with a 1.33-percent rise while property stocks slipped 0.08 percent.
Advancers outnumbered decliners, 105 to 78, while 54 issues were unchanged.
