PHILIPPINE SHARES closed higher on Friday as the peso sustained its strength against the dollar last week, and amid data showing higher vehicle sales for October that signaled stronger economic activity.
The Philippine Stock Exchange index (PSEi) climbed by 23.30 points or 0.37% to close at 6,269.50 on Friday, while the broader all shares index rose by 20.21 points or 0.6% to finish at 3,348.22.
“The local bourse gained by 23.30 points to 6,269.50, thanks to the strengthened peso against the dollar. This positive momentum was further fueled by robust auto sales in October, indicating resilient consumer demand despite high inflation and elevated interest rates,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.
On Friday, the peso closed at P55.38 versus the dollar, rising by a centavo from Thursday’s P55.39 finish, data from the Bankers Association of the Philippines’ website showed.
This was the peso’s strongest close against the greenback in more than three months or since the P55.19-a-dollar finish on Aug. 2.
Meanwhile, a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) released last week showed new vehicle sales increased to 38,128 units in October from 32,146 units in the same month a year ago.
However, car sales declined by 1.3% from 38,628 units sold in September amid elevated inflation.
For the first 10 months, CAMPI-TMA members sold 352,971 units, up by 25.9% from 280,300 units a year ago.
“Overseas, the temporary pause in the conflict between Israel and Hamas also contributed to a more optimistic market sentiment,” Ms. Alviar added.
“Philippine shares traded quietly, [but investors] became bargain hunters as investors were optimistic that the US economy would get a boost following Black Friday,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
Back home, sectoral indices were mixed at the end of Friday’s trading. Property climbed by 31.36 points or 1.18% to 2,689.88; services went up by 9.66 points or 0.63% to 1,521.29; and holding firms rose by 28.58 points or 0.48% to 5,976.28.
On the other hand, industrials fell by 21.17 points or 0.23% to 8,926.32; financials retreated by 1.44 points or 0.08% to 1,745.72; and mining and oil declined by 5.39 points or 0.05% to 9,660.30.
Value turnover reached P2.68 billion on Friday with 445.73 million issues switching hands, higher than the P2.33 billion with 453.55 million shares traded the previous day.
Decliners outnumbered advancers, 94 versus 78, while 51 names ended unchanged.
Net foreign selling stood at P123.04 million on Friday versus the net buying worth P85.63 million net foreign inflows recorded on Thursday.
Philippine financial markets are closed on Monday due to a public holiday for Bonifacio Day. — R.M.D. Ochave
This article originally appeared on bworldonline.com