THE peso rebounded while the stock market fall on Thursday with investors said to be awaiting US inflation data that could provide clues as to how the Federal Reserve would act on interest rates later this month.
The currency strengthened by 8 centavos to at P58.62 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 43.43 points, or 0.69 percent, to end the day at 6,299.67.
This was the bourse’s lowest close in nearly seven months, or since June 25, 2024’s 6,299.05.
The broader All Shares also fell, by 17.05 points or 0.46 percent, to 3,687.86.
The peso opened at P58.6:$1 and ranged from P58.47 to P58.62. Volume for the day rose to P1.423 billion from P1.354 billion in the previous session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso’s strength after the dollar dipped as US President-elect Donald Trump’s incoming economic team signaled that planned tariff hikes would be gradual.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “the local market continued to decline as investors maintained a cautious stance while waiting for fresh leads.”
“Investors are primarily waiting for the US’ December 2024 inflation rate which could provide clues on the Federal Reserve’s policy outlook,” he added.
Tantiangco noted that net value turnover for the day was P4.99 billion, the highest so far this year even as trading was still “tepid, reflecting weak market participation as many chose to stay on the sidelines amid lingering uncertainties.”
“Foreigners were still net sellers with net outflows at P886.66 million contributing to the decline,” he added.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “Philippines shares showed weakness, trading in the red for most of the session as the index closed below [the] 6,300 level.”
“Meanwhile, US equities showed mixed results, as rising bond yields fueled a sell-off in growth and tech stocks, while investors awaited bank earnings and inflation data…,” he added.
DragonFi Securities Inc. equity analyst Franco Fernandez noted that the index had also hit a new six-month intraday trading low of 6,290.89 and said that the next level of support would likely be “between 6,100-6,200 with resistance at 6,400-6,500.”
All sector indices but two closed in the red, with industrial down the most by 1.56 percent. Mining and oil, and property sectors were up 1.04 percent and 0.11 percent, respectively.
On a company basis, decliners outnumbered gainers, 114 to 68, while 60 were unchanged.
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