PSEi rises to 6,600; peso rally continues

THE peso and stock market ended the week on a positive note with sentiment said to have been boosted by better-than-expected economic growth.

The currency extended its rally against the dollar by edging up a little over 3 centavos to P57.28:$1 while the benchmark Philippine Stock Exchange index (PSEi) surged by 98.53 points, or 1.5 percent, to 6,647.80.

The broader All Shares rose by 36.10 points, or 1.01 percent, to 3,608.24.

The peso opened at P57.45:$1 and ranged from P57.185 to P57.45. Volume reached P1.5 billion, slightly lower than Thursday's P1.612 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that second-quarter (Q2) gross domestic (GDP) product growth of 6.3 percent, along with improvements in banks' nonperforming loans, had lifted the currency.

Philstocks Financial Inc. research and engagement officer Mikhail Plopenio, meanwhile, said the PSEi rose «as investors took positive cues from Wall Street overnight amid easing recession worries due to the lower-than-expected weekly jobless claims data.»

«The Philippines' robust Q2 GDP data also continued to give sentiment a boost,» he added.

Regina Capital Development Corp. Managing Director Luis Limlingan said «Philippine shares continued the rally to cross above 6,600 after shaky trading the week prior, as more reassuring economic data brought back more confidence in investors.»

«In addition, US stocks rebounded on Thursday, recovering from earlier losses in the week, as the latest weekly jobless claims data eased investor concerns about the labor market's strength and the broader US economy,» he added.

All sector indices closed in the green, led by mining and oil, that climbed 2.50 percent.

Gainers outnumbered decliners, 104 to 82, while 53 were unchanged.