Stock market tebounds as banking concerns ease 

THE peso gained for a fifth straight day on Tuesday, and the stock market returned to the 6,500 level as fears of a global financial crisis subsided, according to a report by Manila Times.

The currency strengthened by 23-and-a-half centavos to close at P54.44 against dollar, while the benchmark Philippine Stock Exchange index (PSEi) gained 79.73 points, or 1.24 percent, to end the day at 6,530.75.

The broader All Shares also advanced, by 36.84 points, or 1.07 percent, to 3,493.50.

"Philippine shares managed to climb strongly after a forced takeover of Credit Suisse by UBS, which was engineered by the Swiss government," Luis Limlingan, Regina Capital Development Corp. managing director, said.

"Investors also welcomed news that JPMorgan Chase could be advising embattled First Republic Bank on strategic alternatives," he added.

"Investors are now expecting a slower pace of tightening from the Fed in light of the banking crisis as according to CME Group's FedWatch tool, traders are pricing a 77-percent chance of a quarter-point rate hike when the Fed wraps its two-day policy meeting on Wednesday," Limlingan continued.

Claire Alviar, research associate at Philstocks Financial Inc., said the possibility of a rate hike pause had also improved sentiment.

Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, said "other positive factors include Bangko Sentral ng Pilipinas Governor Medalla saying Philippine banks have strong balance sheets, which means policy rate decisions are almost solely driven by our first pillar, which is price stability."

"He also said that domestic banks remain strong amid the increased challenges brought by the collapse of two US-based banks, citing their lower market risk exposure and diversified lending base."

The issuance of rules and implementing amendments to the Public Service Act, which are set to take effect on April 4, "also helped lift market sentiment as well," Ricafort added.

The peso opened trading at P54.3:$1 and ranged from P54.26 to P54.48. Volume reached $1.076 trillion, higher than $861 million in the previous session.

At the stock market, meanwhile, many investors stayed on the sidelines as P4.49 billion in net value turnover was lower than the month's running average of P5.63 billion.

All sectors were in the green, with the services taking the lead with a 1.95-percent gain.

Nearly 546 million shares worth just under P4.78 billion were transacted.

Advancers overwhelmed decliners, 109 to 69, while 43 remained unchanged.