FOREIGN exchange trading remained suspended on Thursday, but the lack of positive catalysts pulled the stock market down to the 7,200 level.
The Bangko Sentral ng Pilipinas (BSP) said that peso/dollar trading and monetary operations would be closed for the day, but it would continue to accept bulk cash deposits from banks. Bulk cash withdrawals from the BSP Security Plant complex were also accommodated.
Work at government offices, along with classes at all levels, was suspended for a second day in Luzon as Severe Tropical Storm Kristine transited the country.
The peso last closed at P57.88 on Tuesday, down by 29 centavos. Its continued weakness after hitting highs in P55:$1 territory last month have been cited as weighing on the stock market.
The benchmark Philippine Stock Exchange index (PSEi) plunged by 1.14 percent on Thursday, shedding 83.87 points for a 7,283.79 close. The broader All Shares also fell, by 1.07 percent or 43.37 points, to 4,007.39.
Philstocks Financial Inc. research manager Japhet Tantiangco said “the local market extended its decline this Thursday as investors continued to exit amid the lack of positive catalysts.”
“Negative spillovers from Wall Street amid the rise in the US’ long-term Treasury yields also weighed on the local bourse,” he added, and that “the exit of foreign funds also contributed to the fall with net outflows amounting to P206.43 million.”
Tantiangco said the day’s trading was “anemic” with net value turnover at P3.61 billion, below the year-to-date average of P5.18 billion.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “Philippines shares marked another loss as the Dow and S&P 500 fell, pressured by the 10-year Treasury yield’s rise to 4.25 percent.”
“Local sentiment was pulled down, tracking global sentiment amid rising yields and economic uncertainties,” he added.
All sector indices closed Thursday in the red. Financials fell the most by 1.77 percent.
Decliners overwhelmed gainers, 139 to 53, while 53 were unchanged.
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