The local stock barometer started the week up ahead of the earnings reporting season but the peso weakened again the US dollar anew.
The Philippine Stock Exchange index (PSEi) rose by 3.14 percent, or 217.15 points, to 7,124.01 points.
All other counters finished with gains, with All Shares up by 1.97 percent, or 85.38 points, to 4,423.90 points.
The Property index led the sectoral gauges with a rise of 5.48 percent and was trailed by Financials, 4.50 percent; Holding Firms, 2.74 percent; Mining and Oil, 1.81 percent; Industrial, 1.77 percent; and Services, 0.15 percent.
Volume totaled 2.44 billion shares amounting to PHP11.76 billion.
Advancers led decliners at 122 to 60, while 58 shares were unchanged.
“Investors bought into local shares as many began to bet ahead of the 3Q earnings, GDP (gross domestic product) data, and the following year as the last quarter of trading is underway,” said Luis Limlingan, Regina Capital Development Corporation head of sales.
Limlingan said many are exploring the possibility of the economy reopening with coronavirus disease 2019 (Covid-19) cases declining.
He said investors are also waiting for other factors from overseas after the release of the weaker-than-expected jobs report in the US last week and concerns on stagflation.
The US Labor Department said some 194,000 jobs were added in the US last September, the slowest for the year, and the unemployment rate fell to 4.8 percent.
Meanwhile, the peso weakened anew against the US dollar after ending the day at 50.80 from last Friday’s 50.58 close.
It opened the day at 50.55 and traded between 50.55 and 50.80.
The average level for the day stood at 50.665.
The volume went down to USD784.55 million from USD1.159 billion at the end of last week.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the local currency’s performance during the day to global oil prices rising to seven-year highs “amid some disruptions in the global supply chain as the winter season approaches.”
Ricafort said the rise of US’ 10-year Treasury yield to four-month highs at 1.61 percent due in part to lower US unemployment rate also disadvantaged the peso, making US bond yields attractive to investors.
However, he said the decline in the number of local Covid-19 infections may result in the further reopening of the domestic economy, which will benefit the local currency.
He forecasts the peso to trade between 50.70-50.90 to a dollar on Tuesday.
Source: Philippines News Agency
