THE peso and stock market closed out the week on a positive note with sentiment said to have been boosted by trade talks progress and expectations of continued interest rate cuts.
The currency strengthened by 11-and-a-half centavos to P55.51 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) added 68.71 points, or 1.08 percent, to end Friday at 6,458.20.
The broader All Shares index also rose, by 22.50 points or 0.60 percent, to 3,762.85.
The peso opened at P55.7:$1 and ranged from P55.395 to P57.82. Volume reached P1.64545 billion, up from P1.701 billion on Thursday.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the gain could be attributed to factors such as likely rate cuts given lower inflation, the PSEi’s recovery due to foreign buying, seasonal remittance inflows, lower oil prices and positive developments on trade negotiations.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “the local market rose on the back of positive spillovers from Wall Street driven by the prospects of trade negotiations with the US following significant progress on the US-UK trade deal.”
“Hopes of further monetary policy easing by the BSP following the Philippines’ slow April inflation print and below target [first quarter] GDP (gross domestic product) growth also drove [the day’s] positive sentiment,” he added.
Tantiangco described the day’s trading as “strong” with net value turnover at P7.5 billion.
“Foreigners were net buyers with net inflows at P463.78 million,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “Philippine shares rose following President Donald Trump’s unveiling of a trade deal framework with the UK, the first significant agreement since the US imposed preemptive tariffs.”
All but one of the six sector indices closed higher, with holding firms gaining the most by 2.75 percent. Mining and oil was the sole loser, down 1.55 percent.
On a company basis, gainers outnumbered decliners, 105 to 84, while 56 were unchanged.