BSP calms stocks from volatile peso onslaught
The Philippine Stock Exchange’s benchmark (PSEi) rebounded on Monday after the Bangko Sentral ng Pilipinas (BSP) calmed the market and said it was ready to support the weakening peso.
At the closing bell, the PSEi was up 1.15% to 6,913.87 while the broader index of all stocks rose 0.84%, or 35.48 points, to 4,270, 02.
Chris Mangun, head of research at brokerage firm AAA Equities, said currency volatility was “one of the main concerns right now because of its direct effect on the economy.”
“The market has rebounded after BSP Governor Diokno expressed in an interview this morning that they are currently not worried about the weakness of the peso and are ready to step in and tame any sharp depreciation to stabilize it.” Mangun said in a note. to investors on Monday.
The news boosted all subsectors, with the winners led by holding companies, up 1.62%, followed by mining and oil and services.
In the same note, Mangun warned that the rebound could only be temporary. “Investors remain hesitant to increase their positions… although they can choose not to offload stocks, which will cause a sideways market,” he said.
A total of 2.09 billion shares valued at P4.83 billion changed hands on Monday.
—MIGUEL R. CAMUS
Subscribe to INQUIRER PLUS to access The Philippine Daily Inquirer and over 70 titles, share up to 5 gadgets, listen to the news, download from 4 a.m. and share articles on social media. Call 896 6000.