Bloomberg News

Philippine Peso Gains After Surprise Exports Jump; Bonds Rally

March 12, 2012

The Philippine peso rose, snapping a two-day loss, as data showed exports unexpectedly climbed in January. Bonds advanced.

Overseas sales increased 3 percent from a year earlier, the first gain since April, the National Statistics Office said in Manila today. The median estimate of economists surveyed by Bloomberg was for an 18.5 percent drop. The data supports the central bank’s view that shipments abroad will recover, Deputy Governor Diwa Guinigundo said.

“The export data is a positive sign and augurs well for a stronger peso,” said Lito Mercado, head of trading at Rizal Commercial Banking Corp. in Manila. “From here, exports will probably stabilize.”

The peso strengthened 0.2 percent to 42.56 per dollar as of 11:30 a.m. in Manila, according to Tullett Prebon Plc. The currency will probably advance “closer” to 42 by the end of the first half as overseas remittances usually increase in April and May, Mercado said.

The yield on the 8 percent peso bond due July 2031 fell seven basis points, or 0.07 percentage point, to 5.66 percent, according to Tradition Financial Services. The Bureau of the Treasury will auction 9 billion pesos ($211 million) of 10-year securities at 1 p.m.

“Liquidity remains supportive of bonds,” Mercado said.

Exports and remittances account for more than 40 percent of the Philippines’ gross domestic product. Economic growth this year may exceed 7 percent, Trade Secretary Gregory Domingo said on March 6. GDP increased 3.7 percent in 2011.

To contact the reporter on this story: Clarissa Batino in Manila at cbatino@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


Steve Ballmer, Power Forward
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus