Peso gains; PSEI slips below 6,200

HIGHER remittances lifted the peso on Monday, but the stock market fell on concerns over the impact of the war between Israel and Hamas.

The currency rose by three centavos to P56.78 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) plunged by 67.51 points, or 1.08 percent, to 6,198.83.

The broader All Shares declined by 0.73 percent, or 24.67 points, for a 3,359.90 finish.

The peso opened trading at P56.82:$1 and ranged from P56.78 to P56.88. Volume reached P859 million, lower than the P922 million recorded in the previous session.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that the currency appreciated as latest overseas Filipino worker (OFW) remittance data showed a 2.8-percent increase in August.

«OFW remittances and conversion to pesos could seasonally accelerate in the fourth quarter, especially during the Christmas holiday season toward the end of the year, a consistent pattern seen for many years and could seasonally support the peso exchange rate as well,» he added.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said the bourse shed points as «investors continued to monitor the ongoing Israel-Hamas conflict.»

He added that traders were closely monitoring increasing tensions in the Middle East as these could propel a rise in oil prices.

Mining and oil was the only sector that gained on Monday, rising by 0.29 percent. Holding firms fell the most, by 1.53 percent.

Just over 815.38 million shares worth some P3.76 billion changed hands.

Decliners edged out advancers, 116 to 64, while 35 were unchanged.