Bargain hunting lifts stock market

The peso ended lower on Wednesday but bargain-hunting helped the stock market to a positive close, according to a report by Manila Times.

The currency weakened by four-and-a-half centavos to P55.77 against the dollar, while the benchmark Philippine Stock Exchange index gained 12.39 points, or 0.19 percent, to end the day at 6,615.95.

The broader All Shares went the opposite direction, shedding 2.06 points, or 0.06 percent, to settle at 3,525.36.

"The local bourse traded sideways with a downward bias in Wednesday's session but last-minute bargain hunters saved the index which was in red territory," Claire Alviar, research associate at Philstocks Financial Inc., said.

"Investors also took advantage of the two consecutive days of a market decline," she added.

China Bank Capital Corp. Managing Director Juan Paolo Colet said "the market managed to end up slightly on some technical buying, but most investors remain on edge due to lack of progress in US debt ceiling talks."

"Caution is the dominant theme as the clock ticks toward the June 1 debt limit deadline," he added.

Regina Capital Development Corp. Managing Director Luis Limlingan said a World Bank assurance that it would support the Philippines' development initiatives had lifted sentiment.

Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, pointed to Fitch Ratings having upgraded the country's credit rating outlook to "stable" from "negative."

The peso opened trading at P55.77:$1 and ranged from P55.725 to P55.82. Volume reached $890 million, lower than the $1.190 trillion posted in the previous session.

At the stock market, holding firms and industrials were the only gainers for the day, up by 0.79 percent and 0.01 percent, respectively. Mining and oil posted the biggest loss of 0.76 percent.

A total of 750 million shares worth P3.8 billion changed hands.

Decliners overwhelmed advancers, 101 to 68, while 50 remained unchanged.