Peso down but stock market breaches 6,300

The peso slipped on Monday but the stock market pushed past the 6,300 level with traders said to have welcomed fresh stimulus measures by China.

The currency weakened by four centavos to P57.3 against the dollar, a development Rizal Commercial Banking Corp. chief economist Michael Ricafort said was due to higher crude prices and domestic political noise.

It opened trading at P57.2:$1 and ranged from P57.175 to P57.31 with volume reaching P1.018 billion, lower than the P1.389 billion last Friday.

The benchmark Philippine Stock Exchange index (PSEi) meanwhile, added 12.085 points, or 0.19 percent, to close the day at 6,306.19.

The broader All Shares was basically flat, gaining just 1.22 points, or 0.03 percent, to 3,722.82.

Philstocks Financial Inc. said "the bourse rose further, joining its regional peers, as China revealed a special action plan to boost its economy's consumption."

Trading was tepid with net value turnover at P4.81 billion, below the year-to-date average of P5.30 billion.

"Foreigners were net buyers with net inflows at P357.25 million," Philstocks said.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said "Philippine shares built on the sentiment from Friday, managing to close above the 6,300 level."

He noted that market movements later this week were likely to be motivated by the results of a US Federal Reserve policy meeting and the release of updated economic projections.

"These offer valuable insights into the Fed's outlook on inflation, economic growth, and the likely direction of future monetary policy," Limlingan said.

Monday's release of January remittance data and the upcoming budget balance report for the same month, he added, "may offer insights into government investment patterns and cash inflows," he continued.

All but two sector indices closed in the red, with mining and oil down the most by 0.65 percent. Services and holding firms, meanwhile, gained 1.57 percent and 0.41 percent, respectively.

On a company basis, gainers edged out decliners, 94 to 92, while 59 were unchanged.