Peso nears P54:$1; PSEi rebounds

By Ed Paolo Salting  and Eireene Jairee Gomez

THE peso neared the P54:$1 mark on Monday while the stock market also rebounded to post a strong start to the week.

The currency gained 53 centavos to close at P55.11 to the US dollar, gaining for a third straight trading day.

The benchmark Philippine Stock Exchange index (PSEi), meanwhile, recovered from Friday's 1.38-percent drop by gaining 122.27 points, or 1.83 percent, for a 6,790.24 close.

The broader All Shares followed with a 55.90-point, or 1.59-percent rise, to 3,568.97.

Rastine Mercado, China Bank Securities head of research, said positive sentiment abroad had spilled over to local markets.

"Optimism continued to run high given expectations of a slowdown in rate hikes from the US Fed and an improving outlook for China and Asia," Mercado said.

"The market is now within striking distance of the 6,800-6,850 resistance, which coincides with the threshold for bull market territory (20 percent up from recent lows of around 5,700 in early October 2022)."

Philstocks Financial Inc. research associate Claire Alviar, meanwhile, said, "Investors in the US reacted positively after the US non-manufacturing PMI (purchasing managers' index) contracted, tempering rate hikes expectation this year."

Locally, "foreigners also helped lift the market as it registered a net inflow of P283.83 million."