THE peso is back at the P55 level, closing stronger against the greenback on Wednesday, but the stock market slipped as investors awaited US inflation data seen underpinning the result of next week’s Federal Reserve policy meeting.
The currency strengthened by 41 centavos to P55.975 while the benchmark Philippine Stock Exchange index (PSEi) — which again hit an intraday high in 7,000 territory — shed 39.75 points, or 0.57 percent, to end the day at 6,944.88.
The broader All Shares index also fell by 20.09 points, or 0.53 percent, to 3,766.21.
The peso opened trading at P56.35:$1 and ranged from P55.935 to P56.35. Volume reached P1.712 billion, higher than Tuesday’s P1.572 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the dollar’s performance against major global currencies, at near eight-month lows, had played a role in the peso’s gain. He also noted that oil prices were at their lowest in 15 months.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco, meanwhile, said “the local market succumbed to selling pressures this Wednesday after four days of rallying.”
“Investors took a cautious stance while waiting for the US’ August inflation data, which can provide clues on the Federal Reserve’s policy outlook,” he added.
“Investors also digested the widening of the Philippines’ balance of trade in goods deficit last July amid a tepid export performance, and the drop in its June foreign direct investment net inflows,” he continued.
Regina Capital Development Corp. Managing Director Luis Limlingan said “Philippine shares finally closed in the red after successive session of closing higher as investors collectively hold their breath before the latest [US] CPI (consumer price index) data later today.”
“US stocks also ended mixed as investors awaited August’s CPI report on Wednesday and the PPI (producer price index) on Thursday, both key to the Fed’s September rate decision,” he noted, adding that “a rate cut is expected to ease economic concerns.”
All sector indices except services, which closed flat, ended the day in the red. Property fell the most by 2.49 percent.
Decliners outnumbered gainers, 131 to 66, while 47 were unchanged.
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