PSEi, peso rise on expectations of extended ECB stimulus program

The Philippine peso and the local bourse tracked the regional improvement Thursday, boosted by expectations that the European Central Bank (ECB) will push back by another six months its bond-buying program in 2017.

The local currency finished the day at 49.69 from 49.75 Wednesday, which a trader also attributed to better-than-expected trade figures from China.

China reported improvements on exports, with the November 2016 figure up by 0.1 percent compared to projections of 0.5 percent decline.

Imports also posted an uptick of 6.7 percent as against the 1.3 percent contraction forecast.

These increased risk appetite during the day, with foreign investors taking hold of more local stocks, which further lifted the peso, the trader said.

The local unit opened the day at 49.65, little changed from the previous day's 49.63.

It traded between 49.72 and 49.59 and average ended at 49.64.

Volume of trade reached USD404 million, higher than the USD351.3 million a day ago.

A range of between 49.60 and 49.90 is being considered for the currency pair Friday.

The same positive trend was seen for the Philipine Stock Exchange index (PSEi), which returned to the 7,000-level.

It finished the day up by 2.27 percent, or 155.57 points, enabling the main index to go up to 7,022.38 points.

The trader said improvement in Wall Street contributed to the sustained rise of the PSEi.

The All Shares traced the main index after it rose by 1.65 percent, or 68.57 points, to 4,221.63 points.

Most of the sectoral indices were up with the Property leading the list with 4.07 percent increase.

It was followed by the Industry, 2.34 percent; Services, 2.13 percent; Holding Firms, 1.59 percent; and Financials, 0.38 percent.

On the other hand, the Mining and Oil fell 0.39 percent.

Total shares traded reached 1.03 billion shares amounting to Php 7.5 billion.

Gainers led losers at 120 to 63 while 44 stocks were unchanged.

Source: Philippines News Agency