THE stock market regained some ground on Thursday, but the peso lost against the dollar for a sixth trading day in a row amid mixed sentiment over latest inflation data and developments in the war on Iran.
The currency weakened by six centavos to P58.63:$1 while the benchmark Philippine Stock Exchange index (PSEi) gained 72.69 points, or 1.15 percent, to 6,380.53.
The broader All Shares also rose, by 40.37 points or 1.16 percent, to 3,.525.99.
The peso opened trading at P58.4 to the greenback and ranged from P58.335 to P58.63. Volume reached P1.572 billion, down from Wednesday’s P1.774 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the currency weakened after inflation rose to its highest in over a year in February.
News that national government debt had hit a new record high of $18.13 trillion as of January was also a factor along with surging oil prices that could drive inflation higher.
Regina Capital Development Corp. sales head Luis Limlingan, meanwhile, said the PSEi recovered on hopes of possible talks between Iran and the United States.
Sentiment was also said to have been supported after February inflation of 2.4 percent fell largely in line with expectations and within the Bangko Sentral ng Pilipinas’ 2.0- to 4.0-percent target range, helping calm worries over renewed price pressures.
Ricafort said that positive cues from Wall Street, where major US indices rose between 0.5 percent and 1.3 percent on better-than-expected economic data, also lifted local shares.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said bargain hunting helped drive the PSEi’s recovery, as investors bet that the government would be able to mitigate the economic impact of elevated oil prices stemming from Middle East tensions.
All sectoral indices finished in positive territory, led by mining and oil that advanced by 1.92 percent.
Market breadth was positive, with 125 gainers against 72 decliners, while 59 issues were unchanged.
Trading activity remained subdued, however, with net value turnover at P5.53 billion, below the year-to-date average of P6.56 billion.
Foreign investors were net sellers, posting net outflows of P198.09 million.