THE peso fell and the stock market closed flat on Monday following the release of October remittances data and ahead of monetary policy decisions due later this week.
The currency weakened by 20 centavos to P58.671 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 1.35 points, or 0.02 percent, to 6,615.16.
The broader All Shares lost 0.22 points, or 0.01 percent, and ended the day at 3,752.51.
The peso opened at the day’s low of P58.6:$1 and traded as high as P58.74. Volume dropped to P1.479 billion from P1.570 billion last Friday.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the currency weakened after the Bangko Sentral ng Pilipinas (BSP) reported 2.5-percent growth in overseas Filipino worker remittances, the slowest in four months
Higher global crude oil prices likely also weighed on the exchange rate, he added.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “the local market inched down as investors took a cautious stance while waiting for the Federal Reserve and the Bangko Sentral ng Pilipinas’ policy meetings this week.”
“The local currency’s depreciation against the US dollar also weighed on the market,” he added.
“On a positive note, last minute bargain hunting trimmed the day’s losses.”
Tantiangco said the day’s trading was “anemic” with net value turnover at P4.45 billion, lower than the year-to-date average of P5.16 billion.
“Foreigners were net sellers with net outflows at P495.90 million,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan said “Philippine shares continued to trade flat as the market began its last full trading week ahead of the holidays.”
“For this week, the spotlight in the US is on the Federal Reserve’s interest rate decision, scheduled for release on Thursday,” he added.
“Locally, investors are closely monitoring the BSP’s interest rate decision, expected to … [be] a 25-basis point cut, which is set to be published on Thursday, December 19.”
All but two sector indices closed in the red with mining and oil down the most by 1.01 percent. Financials and holding firms rose 0.87 percent and 0.28 percent, respectively.
On a company basis, decliners outnumbered gainers, 100 to 87, while 66 were unchanged.
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