Stocks fall, peso hits fresh record low

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MANILA, Philippines — Philippine financial markets opened the week on a cautious note, with stocks declining and the peso sinking to another record low as elevated oil prices, a strong dollar and fragile investor sentiment continued to weigh on local assets.

The benchmark Philippine Stock Exchange index (PSEi) declined by 0.59 percent or 35.25 points to close at 5,941.52.

The broader All Shares index likewise slipped by 0.51 percent or 17.28 points, settling at 3,354.13.

Luis Limlingan of Regina Capital said the PSEi ended lower as buying interest stayed muted, with investors waiting for clearer market catalysts.

“Market sentiment remained fragile amid continued increases in global crude prices. The local currency also stayed weak against the dollar, adding to cautious positioning,” he said.

All sectoral gauges were in the negative territory, except for property which increased by 0.19 percent.

Mining and oil took the biggest hit, plunging by 3.43 percent, followed by financials, which retreated by 1.04 percent.

Trading was thin, with total turnover value amounting to P4.05 billion.

Decliners crushed advancers, 117 to 65, while 68 issues were unchanged.

Meanwhile, the peso closed at a fresh all-time low of 61.75 per dollar yesterday, weaker by 2.9 centavos from Friday’s 61.721 finish, according to data from the Bankers Association of the Philippines.

The local currency opened at 61.69, with its strongest level at 61.64. It later weakened to 61.75, its weakest intraday level on record, where it also ended the session. Trading volume dropped by about 16.4 percent to $1 billion from $1.2 billion previously.

“The peso is starting to trade less on valuation and more on sentiment. The dollar remains broadly strong, but (yesterday’s) move also reflects demand for safety, higher oil-related dollar demand and a market that is becoming more sensitive to domestic uncertainty,” a trader said.

“Near term, the bias remains for a weaker peso, with 62 now psychologically within reach, though sharp swings in both directions are likely,” the trader added.