Stocks close higher as peso dips further

While the stock index rose for the fifth straight session on Tuesday, the peso weakened further.

The main-share Philippine Stock Exchange index added 13.64 points, or 0.23 percent, to close at 6,019.24. Earlier in the day, however, the index pulled back to the 5,900 level before it recovered lost ground in the afternoon session.

Across the region, equities were mostly higher as China injected additional liquidity into its financial system.

The PSEi’s rise was led by the mining/oil (+2.75 percent) and services (+1.16 percent) counters. The financial and industrial counters also firmed up. On the other hand, the holding firms and property counters slipped to negative territory.

Value turnover was thin at P4.72 billion. There were 85 advancers against 72 decliners while 39 stocks were unchanged.

PLDT and BDO aided the PSEi’s rise, advancing by over 2 percent. Investors also picked up shares of Metrobank, AGI and AP.

Outside of index stocks, notable gainers are Security Bank (+1.36 percent) and Atlas (+7.11 percent).

For this week, daily trading volume may remain below the three-month and six-month averages given the lack of market-moving catalysts in the short-term, Metrobank said in a research note.

The peso, on the other hand, continued to slip, tracking gains of other Asian currencies.

The dollar’s surge was also fueled by speculation that the Federal Reserve would announce a fresh reduction in asset purchases at its next meeting later this month.

The peso closed at 45.25 against the dollar—its weakest since August 31, 2010 when the local currency stood at 45.37:$1.

Trading improved as volume reached $996.50 million from $687.80 million the day before.

At the start of the trading session, the peso opened at 45.13:$1—its strongest level that day. The currency closed at its intraday low.—Doris C. Dumlao, Paolo G. Montecillo