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THE peso weakened further Wednesday due to continued
volatility brought about by the US economic difficulties, but the
local stock market got a whiff of support from Wall Street’s
overnight rise.
At the Philippine Dealing
System, the local currency closed at the day’s lowest level of
41.35 against the greenback, from Tuesday’s finish of 41.2.
Trading volume reached $634.6 million, slightly lower than the
previous trading day’s $692.5 million.
Marcelo Ayes, Rizal Commercial
Bank Corp. vice-president said the weakening is still within the
“healthy correction” and seasonal adjustment, despite an
offshore demand for the peso.
Ayes said the local currency
would appreciate again against the dollar after next week’s long
holiday as more people prepare for summer school opening.
In a market commentary,
Metropolitan Bank and Trust Co. said the peso fell to 41.38 on
heightened risk aversion brought about by falling equity markets and
tightening credit.
Metrobank said the local
currency may rise to 41.00, then 40.80 before hitting 40.40.
“It would take a close
above 41.20 to see the stronger side of the dollar, with 41.40 then
41.60 as the target,” it said.
The peso is seen to range
between 40.40 and 40.60 this week.
At the Philippine Stock Exchange,
share prices closed 1.5 percent higher after strong gains overnight
on Wall Street where moves to beef up liquidity in the financial
system were announced, dealers said.
They said the US rally came after
the Federal Reserve teamed up with other central banks to inject
liquidity into strained financial institutions.
The composite index was up 44.39
points at 2,953.39 off a high of 3,004.71.
The broader all-share index
gained 22.37 points at 1,807.97.
Volume improved slightly, with
1.2 billion shares valued at P3.5 billion.
“Investors heaved a collective
sigh of relief after seeing the Fed making another bold move to
address the credit crunch. But the big question now is whether this
exercise will cure what ails the US economy,” said Gomer Tan of
Regina Capital Development Corp.
Philippine Long Distance
Telephone Co. closed up five pesos at P2,800, after rising as high
as P2,860.
Megaworld was up 16 centavos at
P2.28.
San Miguel Corp. A rose one peso
to P39.50. Its B shares advanced one peso to P40.
Manila Electric Co. rose 50
centavos to P79.
--Chino S. Leyco and AFP
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