THE peso fell and the stock market also closed lower as investors awaited the latest inflation and economic growth data amid concerns over a potential White House return for former US president Donald Trump.
The currency weakened by 24 centavos to P58.34 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) edged down by 6.86 points, or 0.10 percent, to 7,136.10.
The broader All Shares lost 5.55 points, or 0.14 percent, and ended the day at 3,951.66.
The peso opened at P58.27:$1 and ranged from P58.15 to P58.36. Volume reached P1.176 billion, down from the P1.299 billion recorded on Thursday.
Philippine financial markets were closed on Friday as the country marked All Saints’ Day.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened as markets continued to factor in a possible Trump win, which could impact future rate cuts.
This also pushed the benchmark 10-year US Treasury yield to nearly a four-month high, which weighed on the peso exchange rate.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “investors maintained a cautious stance while waiting for crucial economic data to be released this week, as well as the US’ upcoming presidential elections.”
“Investors are taking into consideration expectations of a higher inflation in October and a slowdown in GDP (gross domestic product) growth in [third quarter],” he added.
“Foreigners were still net sellers, adding to the market’s challenges. Net foreign outflows for the day amounted to P777.98 million,” Tantiangco continued.
He called the day’s trading “tepid” with net value turnover at P4.42 billion.
Regina Capital Development Corp. Managing Director Luis Limlingan said the market was currently focusing on key US events, with “investors keeping a close watch on the November 5 elections and the Federal Reserve’s policy meeting.”
“Any indications from the Fed regarding future rate adjustments could shape market sentiment,” he added.
“Locally, the economic calendar is equally eventful. Monday kicks off with the release of October’s S&P Global Manufacturing PMI (purchasing managers’ index), followed by Tuesday’s inflation data,” he added.
“Wednesday brings updates on employment, trade balance, and industrial production. The week concludes on Thursday with the release of 3Q24 GDP growth figures and foreign exchange reserves.”
All but two sector indices closed in the red with mining and oil down the most by 1.93 percent. Holding firms and services added 1 percent and 0.88 percent, respectively.
Decliners outnumbered gainers, 107 to 76, while 58 were unchanged.
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