Investors spooked by weak peso, upcoming US inflation report
The Philippine Stock Exchange index (PSEi) dipped anew on Wednesday as the peso freefall and the upcoming US inflation data kept investors on the sidelines.
The benchmark PSEi dropped by 1.49 percent, or 94.57 points, to close at 6,255.37, while the wider all-shares index slipped 1.04 percent, or 35.34 points, to settle at 3,374.57.
“[The] market digests the weakening peso while waiting for the US inflation rate,” said Claire Alviar, Philstocks Financial Inc. assistant manager for research and online engagement.
The peso recently reached an all-time low of 56.45:$1 in intraday trade before closing at P56.37:$1 on Tuesday. It gained ground on Wednesday, ending at 56.26:$1.
“Almost all markets globally await the inflation print in the US as it will greatly influence the decision of the Federal Reserve (Fed) regarding interest rates, which will have a negative impact on almost all currencies once the US dollar gets stronger if the Fed will be more aggressive in monetary tightening,” Alviar added.
All subsectors were down except for mining and oil, which was up 0.24 percent. Holding firm and financial indices had the steepest decline at 1.96 percent and 1.93 percent, respectively.
About 1.28 billion shares valued at P5.55 billion were traded. Losers outnumbered winners, 139-44, while 49 issues did not change hands.
Actively traded
Property giant Ayala Land Inc.’s shares, the most actively traded, fell by 3.37 percent to P24.40 each.
This was followed by conglomerate SM Investment Corp., down 1.97 percent to P797; Semirara Mining and Power Corp., up 1.32 percent to P38.50; Emperador Inc., down 2.13 percent to P17.42 ahead of its July 14 dual listing on the Singapore Exchange; International Container Services Inc., down 0.65 percent to P182.80; and Monde Nissin Corp., up 3.11 percent to P13.94 after the sharp decline caused by “Lucky Me” concerns.
Other active names were: PLDT Inc., down 0.18 percent to 1,706; BDO Unibank Inc., down 1.72 percent P119.90; Metropolitan Bank & Trust Co., down 4.12 percent to P47.65; and Ayala Corp., down 2.58 percent to P604.
