Stocks recovers, peso ends sideways on global growth issues

MANILA — The Philippine Stock Exchange index (PSEi) recovered on Tuesday after a four-day slide while the peso ended sideways as investors continued to worry on global economic output.

The main equities gauge rose by 0.34 percent, or 26.43 points, to 7,893.94 points.

Regina Capital managing director Luis Limlingan attributed partly to “weak economic data out of Europe.”

He is referring to the Eurozone Manufacturing PMIs for September that showed an almost seven-year low of 45.6 from 47 in August. Any reading below 50 indicates contraction while figures above 50 show otherwise.

Limlingan also cited the wait-and-see stance on the US-China trade talks after US Trade Secretary Steven Mnuchin said discussions will resume on October 7.

With these factors, the improvement of the main index was mirrored by the All Shares after it rose 0.20 percent, or 9.73 points, to 4,770.97 points.

Property and Financials also finished the day with gains at 1.61 percent and 0.60 percent, respectively.

However, most of the sectoral indices ended in the red, led by the Mining and Oil, which contracted by 0.62 percent.

It was followed by the Services, 0.49 percent; Industrial, 0.41 percent; and Holding Firms, 0.14 percent.

Volume reached 899.97 million shares amounting to PHP8.5 billion.

Decliners led advancers at 122 to 80, while 54 shares were unchanged.

Relatively, the peso ended the day at 52.15 from 51.185 a day ago, which a trader said was affected by the performance of local equities during the day.

The local currency opened the day at 52.12, sideways from its 52.05 start in the previous session.

It traded between 52.12 and 52.25, resulting in an average of 52.189.

Volume reached USD1.23 billion, lower than the USD1.26 billion a day ago.

The currency pair is seen to trade between 52.10 and 52.30 Wednesday. Joann Villanueva/PNA- northboundasia.com