Manila: Peso at 7-year high

The peso touched 45.245 to the dollar during trading and closed at 45.25, its strongest level since around September 2000. It had closed at 45.55 to the dollar on Monday.

"We expect huge dollar inflows from those IPOs [initial public offerings of stock] to push the peso higher," a dealer with a local commercial bank said.

The dollar's weakness against other major currencies in early Asian trade and the absence of any negative domestic news also helped lift sentiment towards the peso, the dealer said.

Following the IPO of Aboitiz Power Corp, whose shares began trading on the Philippine Stock Exchange on Monday, broadcasting company GMA Network Inc launched its domestic offering Tuesday.

GMA Network's IPO drew strong interest from foreign investors, prompting the company to price its offering at 8.50 pesos (18 US cents) per share, the top end of its indicative price range.

Philippine National Bank also begins its international roadshow this week for a follow-on offering, and property developer Vista Land and Lifescapes Inc has scheduled a stock offering for this month.

- By Business Desk

Philippine Daily Inquirer, Asia News Network

Publication Date: 18-07-2007