THE peso touched its record low of P59 to the dollar on Wednesday but managed to regain some ground, limiting the day’s loss.
After opening at P58.89:$1, the currency traded from P58.99 to P9 and closed at P58.99, nearly 12 centavos down from a day earlier.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened ahead of an expected 25-basis-point rate by the Monetary Board today.
“The peso also weakened … after the PSEi (Philippine Stock Exchange index) again declined,” he added.
The benchmark index fell for a sixth consecutive day, shedding 0.50 percent, or 0.50 percent, to 6,469.08.
The broader All Shares also edged down, by 10.21 points or 0.28 percent, to 3,700.00.
Philstocks Financial Inc. research manager Japhet Tantiangco said, “the local market extended its decline … as investors stayed on the cautious side while waiting for the outcomes, including the policy outlooks, of the meetings of the [US] Federal Reserve and the Bangko Sentral ng Pilipinas.”
“The peso’s weakness, now testing the P59.00 per US dollar level, also weighed on the day’s trading,” he added.
Tantiangco said the day’s trading was “tepid,” with net value turnover at P4.35 billion, below the year-to-date average of P5.17 billion.
“Foreigners were still net sellers, contributing to the market’s decline. Net foreign selling for the day was at P487.26 million.”
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said, “Philippine shares continued to drop ahead of the [Fed’s] FOMC (Federal Open Market Committee) meeting and following the sentiment of regional markets.”
All but two sector indices closed in the red, with financials down the most by 1.71 percent. Industrial and services were the only two gainers, up by 0.67 percent and 0.62 percent, respectively.
On a company basis, decliners outnumbered gainers, 104 to 83, while 61 were unchanged.
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