THE peso and stock market slipped on Wednesday as investors awaited the results of a US Federal Reserve (Fed) meeting.
The currency edged down by two-and-a-half centavos to P55.72 against the dollar while the benchmark Philippine Stock Exchange index (PSEi), which hit an intraday high of 7,219.17, ended the day down 19.46 points, or 0.27 percent, to 7,155.90.
The broader All Shares shed 2.21 points, or 0.06 percent, to close at 3,847.96.
The peso opened at P55.8:$1 and ranged from P55.715 to P55.865. Volume slipped to P1.229 billion from Tuesday’s P1.260 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso weakened as global crude oil prices hit new two-week highs.
He added that stronger-than-expected US economic data, including retail sales, industrial production and capacity utilization, contributed to a slight rise in the dollar against other global currencies.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco, meanwhile, said “last-minute profit-taking sent the local market lower this Wednesday.”
“Investors booked gains following the bourse’s two-day rally,” he added.
“Investors also took a cautious stance while waiting for the Federal Reserve’s policy decision.”
Tantiangco noted that net value turnover, at P5.65 billion, was higher than the year-to-date average of P5.04 billion.
“Foreigners were still net buyers with net inflows amounting to P773.87 million,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan said “the PSEi snapped its two-day winning streak as traders awaited the Fed’s rate cut decision, with a 63 percent chance of a 50 bps (basis points) cut.”
“However, some investors are concerned that a larger-than-expected cut could indicate underlying economic weakness,” he added.
Sector results were mixed, with mining and oil gaining the most by 1.83 percent, while financials fell by 0.66 percent.
Gainers outnumbered decliners, 125 to 68, while 60 were unchanged.
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