The peso and share prices rebounded yesterday with the peso closing at 46.35 to the US dollar from Wednesday’s close of 46.58.

The Philippine Stock Exchange index regained 57.79 points to close at 4,645.00.

Gainers overwhelmed losers 100 to 23 with 55 stocks unchanged in a trading that reached 3.44 billion shares for P6.65 billion.

The peso traded from 46.28 to 46.47 with total trade of $547.90 million.

Harry Liu, Summit Securities, Inc. president said the correction on Wednesday signaled the start of a medium term consolidation for the market.

"It is a long awaited correction which should have been a short term consolidation, but since the short term consolidation never occurred, we are looking at a medium term consolidation," he said.

"Of course there will be an swinging movement in the index during this consolidation but we still have to see in the next two weeks where the market would be heading," he said.

Liu said the drop on Wednesday as a convulsion of mixed factors like the concern on the US interest rates, overheating local stocks, the government’s collection shortfall and the exchange’s own initiative to curb on speculation on capital deficit stocks.

"But the immediate recovery shows that the market’s undertone is strong. If not we would have seen a further slide in the market," he said.

Most actively traded Philippine Long Distance Telephone Co. (PLDT) went up P50 to P2,670.

Globe Telecom Inc., was up P5 to P1,365.

SM Investments Corp. was up P27.50 to P427.50.

Metrobank was up P1 to P68.50.Bank of the Philippine Island was up P1.50 to P69.50.

San Miguel Corp. A shares was up P3 to P75, B shares went up P1 to P81.

Meanwhile the peso has been resilient — it remains the second-best performer in Asia with rises of 5.8 percent against the dollar so far this year, trailing only after the Indian rupee.

Reflecting improved investor sentiment, the MSCI index of Asian stocks outside Japan rose nearly 1.2 percent, taking their cue from rising US stocks.

Some analysts expect steep falls in the high-yielders in recent weeks to create buying opportunities for investors.