THE peso fell to the P57:$1 level on Wednesday, and the stock market also ended down in 7,400 territory, bucking gains elsewhere in the region.
The currency weakened by 11 and a half centavos to P57.02 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 112.73 points, or 1.50 percent, to 7,424.52.
The broader All Shares dropped 44.05 points, or 1.08 percent, to 4,033.36.
The peso was an outlier in the region, where most emerging Asian currencies registered minor gains against a broadly muted dollar.
A number of Asian equity markets also gained as investors sought a clearer picture of the US Federal Reserve’s rate cut path.
Investors awaited the latest inflation data from the US as well as minutes from last month’s Fed’s policy meeting to get a better sense of where interest rates could be headed.
The peso opened at P56.888:$1 and ranged from P56.87 to P57.06. Volume reached P1.582 billion, lower than P1.897 billion in the previous session.
The PSEi, meanwhile, was said to have been hit by profit-taking, and analysts said the peso’s fall had also contributed to Wednesday’s drop.
Philstocks Financial Inc. research manager Japhet Tantiangco said that trading was tepid with net value turnover at P5.09 billion, below the year-to-date average of P5.22 billion
“Foreigners were net sellers, breaking the market’s 27-day net foreign buying streak,” he added. “Net foreign outflows for the day amounted to P402.75 million.”
Regina Capital Development Corp. Managing Director Luis Limlingan also said that “Philippine shares succumbed to profit-taking after briefing touching the 7,600 level at overbought territory as investors gear up for the US CPI (consumer price index) [report].”
“Markets found little relief by easing oil prices, which was countered by ongoing Middle Eastern tensions,” he added.
“The market had rallied last week following a strong jobs report, with the Dow reaching a record high. However, investor enthusiasm waned as expectations grew that the Federal Reserve may slow future rate cuts due to a robust labor market.”
All sector indices closed the day in the red, with holding firms down the most by 1.77 percent.
Decliners outnumbered gainers, 122 to 72, while 64 were unchanged.
WITH A REPORT FROM REUTERS
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