Peso falls further; PSEi slumps 2.1%

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THE peso continued to weaken on Thursday and the stock market also plunged as investors reacted to a sharper-than-expected economic growth slowdown and Donald Trump’s winning the US presidential elections.
The currency weakened by 6.9 centavos to P58.73 against the dollar, while the benchmark Philippine Stock Exchange index (PSEi), which hit an intraday low of 6,923.99, ultimately shed 150.98 points, or 2.11 percent, to end the day at 7,014.44.

The broader All Shares also dropped, by 78.33 points or 1.97 percent, to 3,891.64.
The peso opened at P58.8:$1 and ranged from P58.68 to P58.805. Volume reached P1.571 billion, down from Wednesday’s P1.91 billion.

News that third-quarter Philippine economic growth had slowed to 5.2 percent — the market had expected 5.7 percent — from 6.4 percent three months earlier weighed on the peso, Rizal Commercial Banking Corp. chief economist Michael Ricafort said.
The dollar’s having gained against major global currencies after Trump secured a White House comeback was also a factor, he added.

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Philstocks Financial Inc. research manager Japhet Tantiangco said that “investors priced in the negative implications of US protectionist policies on the global economic outlook…”
“Also weighing on investors’ sentiment was the slowdown in the Philippines’ Q3 GDP (gross domestic product) growth to 5.2 percent,” he added.

The peso’s continued decline also pulled down the bourse, Tantiangco continued.
Trading was said to be strong, with net value turnover of P9.51 billion higher than the year-to-date average of P5.18 billion.

“Foreigners were net sellers with net outflows amounting to P3.90 billion,” Tantiangco noted.

Regina Capital Development Corp. Managing Director Luis Limlingan also said that the third-quarter growth result pulled down share prices and that “investors grew anxious as Trump’s second-term win spurred selling on the PSEi, pushing it into negative territory.”

All sector indices but one ended the day in the red, with property down the most by 3.94 percent. Services was the sole exception, edging up by 0.05 percent.
Decliners outnumbered gainers, 167 to 46, while 40 were unchanged.

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