PSEi lower, peso down 35 centavos
THE peso fell and the stock market edged lower to start the trading week, weighed down by news of declining foreign investments and investor wariness ahead of central bank meetings this week.
The currency weakened by 35 centavos to P55.65 against the dollar, while the benchmark Philippine Stock Exchange index (PSEi) slipped by 6.48 points, or 0.1 percent, to end the day at 6,228.29.
The broader All Shares dipped by 0.06 percent, or 1.93 points, to 3,327.65.
The peso opened trading at P55.57:$1 and ranged from P55.53 to P55.665. Volume reached P888 million, substantially lower than the P1.211 billion recorded in the previous session.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso lost strength as a measure of the US dollar against major global currencies rose following better-than-expected US employment data.
«The US dollar/peso also corrected higher after softer net foreign direct investment data [and] tensions between the Philippines and China in disputed waters recently,» he added.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said share prices fell as «markets braced for the start of a new trading week.»
Limlingan noted that investors would be closely monitoring key economic data releases as well as the results of the policy meetings of the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve.
Philstocks Financial Inc. research associate Claire Alviar said the PSEi closed lower as «investors digested the statement of BSP Governor Eli Remolona Jr. that it is premature to discuss policy easing in 2024.»
Remolona's statement weighed down sentiment «due to potential adverse impacts on the economy with prolonged elevated interest rates,» she added.
Market participation remained weak, resulting in a net market value turnover of P3.85 billion, lower than the year-to-date average of P4.89 billion.
Despite the market's downturn, holding firms and property indices gained on Monday, increasing by 0.75 percent and 0.66 percent, respectively.
The financials index, on the other hand, was the biggest loser, dropping by 1.95 percent.
Decliners outnumbered advancers, 118 against 64, while 48 were unchanged.
