Peso, stocks end week up as investor sentiment rises

THE peso and stock market ended the week on a positive note with sentiment said to have been boosted by rate cut prospects and optimism over third-quarter (Q3) corporate earnings.

The currency strengthened by 28.9 centavos to P57.511 while the benchmark Philippine Stock Exchange index added 15.40 points, or 0.21 percent, to close Friday at 7,415.73.

The broader All Shares edged up by 5.28 points, or 0.13 percent, to 4,081.52.

The peso opened at the day's high of P57.8:$1 and ranged as low as P57.48. Volume surged to P1.744 billion from the previous day's P1.469 billion.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said that signals of less aggressive monetary easing, along with a drop in global crude oil prices, had lifted the peso.

Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said «positive sentiment took over… driven by the policy easing prospects of the Bangko Sentral ng Pilipinas and optimistic expectations of Q3 corporate results.»

Trading, however, was said to be «tepid» with net value turnover at P4.25 billion, lower than year-to-date average of P5.21 billion.

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«Foreigners were net buyers with net inflows amounting to P173.77 million,» Tantiangco added.

Regina Capital Development Corp. Managing Director Luis Limlingan said the day's gain came as «investors gear up for 3Q earnings as BPI (Bank of the Philippine Islands) became the first in the index to report better-than-expected profit.»

The Ayala-led bank on Thursday said it had earned a record P48 billion as of the end of the third quarter.

All but two sector indices closed in the green, with mining and oil up the most by 0.76 percent. Industrial and holding firms lost 0.19 percent and 0.13 percent, respectively.

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Gainers outnumbered decliners, 103 to 91, while 62 were unchanged.