THE Philippine peso further strengthened against the greenback on Thursday as global crude oil prices softened while local stocks recovered on bargain hunting after two days of declines.
The local currency strengthened by 0.9 centavos to P62.73 from Wednesday's close of P62.739:$1, its third day of modest gains since falling to a record low of P62.86 per dollar on Monday.
It opened at P62.83 and traded between P62.72 and P62.85 during the session. Trading volume dropped to $1.268 billion from $1.348 billion in the previous session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso slightly strengthened as global crude oil prices corrected lower amid signs of easing supply disruptions in the Middle East, which could help ease inflationary pressures.
Meanwhile, Philippine shares recovered as investors hunted for bargains following two straight sessions of declines, but lingering market uncertainties held the benchmark index back from reclaiming the 6,000-point level.
The Philippine Stock Exchange index (PSEi) rose 41.70 points, or 0.70 percent, to close at 5,958.64.
Philstocks Financial Inc. research manager Japhet Tantiangco said bargain hunting drove the market’s rebound after recent declines.
“Despite the market’s climb, however, it was still unable to get back above the 6,000 level,” Tantiangco said.
Regina Capital Development Corp. head of sales Luis Limlingan said investors took advantage of lower valuations following the recent sell-off, but sentiment remained measured amid market uncertainties and the US Federal Reserve’s rate hike.
Trading activity strengthened, with net value turnover reaching P23.14 billion, well above the year-to-date average of P6.27 billion, Tantiangco said.
The broader market was mixed, with 97 decliners against 93 gainers and 66 unchanged issues, Limlingan said. The figures excluded extraordinary block sales.
Conglomerates led the sectoral gains, rising 1.45 percent, while banks posted the biggest decline at 0.82 percent.
Semirara Mining and Power Corp. surged 20.06 percent to P20.05, making it the best-performing index stock. GT Capital Holdings Inc. fell 4.12 percent to P414.20, the biggest index laggard.
