THE peso resumed weakening on Thursday as the stock market plunged to an over three-month low.
The currency closed at P58.777 to the dollar, down by four centavos, and the Philippine Stock Exchange index (PSEi) shed 157.24 points, or 2.34 percent, to end the day at 6,557.09.
It was the benchmark index’s lowest close since Aug. 8’s 6,549.27.
The broader All Shares index, meanwhile, lost 111.84 points, or 2.95 percent, to 3,680.62.
The peso opened at P58.8:$1 and ranged from P58.75 to P58.85 with volume reaching P1.531 billion, higher than the P1.435 billion recorded in the previous session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso’s dip to a stronger US dollar and rising US Treasury yields.
The PSEi having fallen for a seventh straight trading day was also a factor, he added.
Philstocks Financial Inc. research manager Japhet Tantiangco said “investors continued to exit the market amid the rise in both local and US long term Treasury yields, as well as the weakness of the local currency against the US dollar.”
“Ultimately, investors are still worried over the prospects of protectionist policies in the US and its impact on the global economy, especially on the Philippines,” he added.
Tantiangco said that day’s trading was strong with net value turnover at P7.04 billion, higher than the year-to-date average of P5.19 billion.
“Foreigners were net sellers with net outflows amounting to P2.05 billion,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan, for his part, said “Philippine shares broke past 6,600 to end at 6,557.09 as more funds continued to exit this week, while Wall Street ended flat.”
“The post-election [US market] rally finally slowed, with October’s CPI (consumer price index) meeting expectations at a 2.6 percent annual increase and core inflation rising 3.3 percent,” he added.
“Locally, the PSEi extended its losses for a seventh straight session, impacted by the pullback in US equities.”
All sector indices were in the red with mining and oil getting down the most by 3.69 percent.
Decliners again outnumbered gainers, 181 to 35, while 38 were unchanged.
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