THE peso continued to recover against the dollar on Thursday, and the stock market also rose to the 6,500 level amid renewed rate cut hopes.
The currency strengthened by 14-and-a-half centavos to P58.58:$1 while the benchmark Philippine Stock Exchange index (PSEi) added 57.46 points, or 0.89 percent, to end the day at 6,507.49.
The broader All Shares index also rose by 20.74 points, or 0.59 percent, to 3,515.87.
The peso opened at P56.63 to the dollar and ranged from P58.58 to P58.695. Volume rose to P1.014 billion, higher than Wednesday's P779 million.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., noted that the peso strengthened after news of softer-than-expected US economic data that could support a Federal Reserve rate cut.
Philstocks Financial Inc. research and engagement officer Mikhail Plopenio, meanwhile, said that PSEi joined its Asian peers as "the region took cues from the S&P 500 and the Nasdaq's record performances overnight."
"Aside from the positive spillovers, foreign inflows also aided the local bourse's climb as foreigners were net buyers with net inflows amounting to P462.91 million," he added.
The S&P 500 and Nasdaq again finished at fresh records Wednesday, extending a positive run following mixed economic data in a quiet holiday-shortened session.
Regina Capital Development Corp. Managing Director Luis Limlingan said the PSEi rose ahead of today's release of June inflation data "and despite the US celebrating its July 4 holiday."
"The local bourse was driven by bargain hunting and positive cues from Wall Street. This led the PSEi to join its neighboring peers, especially Japan, with the Nikkei reaching an all-time high today," he added.
"Wall Street closed mixed on Wednesday's shortened trading session as investors shrugged off sluggish economic data," Limlingan continued.
"Statistics released Wednesday morning showed signs of a softening economy ahead of Friday's crucial June jobs report," he noted.
Except for holding firms, which slipped by -0.04 percent, all other sectors closed in the green. Services gained the most by 1.78 percent.
Gainers edged out decliners, 90 to 83, while 62 remained unchanged.
WITH A REPORT FROM AGENCE FRANCE-PRESSE
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