PSEi up on bargain hunting; peso weakens to P61.351:$1

Philippine shares rebounded on Tuesday as market players picked up bargains after recent declines, while the peso depreciated further against the United States dollar amid renewed global currency pressures.

The main Philippine Stock Exchange index (PSEi) gained 91.20 points or 1.51% to close at 6,126.22, while the broader All Shares index grew by 24.06 points or 0.72% to 3,365.14.

More than 705.870 million shares, valued at P6.832 billion, changed hands. Advancers led decliners, 85 to 83, while 66 issues were unchanged.

“The PSEi ended higher as investors engaged in bargain hunting following two consecutive sessions of declines. The rebound came despite broad weakness across regional markets,” said Luis Limlingan, Regina Capital Development Corp. head of sales, in a mobile message.

“Market sentiment remained cautious, with participants balancing attractive valuations against ongoing global uncertainties,” he added.

The Philippine peso, meanwhile, depreciated by 22.8 centavos to P61.351:$1 from Monday’s finish of P61.123:$1.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, Tuesday’s depreciation is still due to recent hawkish signals by Federal Reserve officials.

The Fed kept rates steady last week, but gave hawkish signals, driving bets on rate hikes. The Fed Fund futures are pricing in a possible 0.25 rate hike by October, and a total of 0.50 by March 2027.

“The US dollar/peso exchange rate went up for the 5th straight trading day… after hawkish Fed signals recently, with most Fed officials estimating Fed rate hikes in the coming months,” Ricafort said in a separate message. — JMA, GMA News