Manila: Bargain-hunting sustained the Philippine Stock Exchange index’s (PSEi) rise on Thursday, but the local currency weakened against the U.S. dollar after closing sideways in the last two days. The main stock index rose 2.01 percent to 5,930.81 points, and the broader All Shares rose by 2.56 percent to 3,335.02 points.

According to Philippines News Agency, most of the sectoral gauges also posted increases during the day, led by the Property, after it rose 2.82 percent. It was followed by the Financials, 2.64 percent; Holding Firms, 1.38 percent; Industrial, 1.22 percent; and Services, 1.13 percent. Only the Mining and Oil fell after a decline of 0.49 percent. Volume reached 1.74 billion shares, amounting to PHP15.69 billion. Advancers led decliners at 96 to 72, while 66 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation head of sales, said the main index rose anew ‘as buying pressure accelerated.’ ‘The rally was fueled by renewed confidence following indications of further rate cuts from the BSP (Bangko Sentral ng Pilipinas) before the end of the year. Also, the removal of agricultural tariffs, and the government’s plans for negotiations to reduce tariffs on non-exempt goods helped on the sentiment,’ he added.

On the other hand, the local unit depreciated to 59.06 from the day before’s 58.93, which Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed partly to the strengthening of the U.S. dollar after the release early Thursday (Philippine time) of the minutes of the Federal Open Market Committee (FOMC) meeting last October 28-29, which showed the possibility of the Federal Reserve keeping its key rates steady until the rest of the year due to labor market and inflation concerns.

The local currency started the day sideways at 59.00 and traded between 59.00 and 59.11, with an average for the day standing at 59.06. Volume went down to USD1.08 billion from the day-ago’s USD1.39 billion. Ricafort forecasts the local currency’s next important resistance level at 59.20, but the initial supply is projected to be at 59.00.