Shares open higher on French election relief


Posted at Apr 25 2017 09:52 AM

MANILA – Share prices opened higher on Tuesday, as world markets welcomed the results of the French election.

The Philippine Stock Exchange Index was up 0.96 percent to 7,661.83. The peso opened at P49.79 to the dollar from P49.785 on Monday.

Month-end “window-dressing” could lift share prices this week, with markets closed on Friday for a Southeast Asian leaders’ summit, said Regina Capital managing director Luis Limlingan said.

“There’s a sigh of relief that the centrist or the more popular candidate for the market won,” Limlingan told ANC’s “Market Edge with Cathy Yang.”

Centrist Emmanuel Macron took a big step towards the French presidency on Sunday by winning the first round of voting and qualifying for a May 7 runoff alongside far-right leader Marine Le Pen.

Investors were concerned a victory for Le Pen could put France on the path taken by Britain to leave the European Union.

The risk rally has kept safe-haven assets, including the yen and gold came, under pressure, while the Canadian dollar fell after the US announced new duties averaging 20 percent on Canadian softwood lumber imports. The Canadian currency tumbled to a four-month low as the U.S. dollar strengthened 0.35 percent to C$1.3543.

MSCI's broadest index of Asia-Pacific shares outside Japan was little changed early on Tuesday.

Japan's Nikkei added 0.3 percent. South Korea's KOSPI advanced 0.2 percent. Australia is closed for a holiday.