PH shares tank as peso weakens further

The Philippine Stock Exchange index (PSEi) succumbed to profit-taking after rallying in the past week due to poor sentiments brought about by the peso depreciation.

On Monday, the benchmark PSEi fell 2.32 percent, or 159.45 points, to close at 6,704.41 while the wider All Shares index dropped 1.59 percent, or 57.64 points, to settle at 3,577.93.

Claire Alviar, Philstocks Financial, Inc. assistant manager for research and online engagement, noted the peso traded past P56 against the dollar anew yesterday. It closed at P55.21, near its intraday low of P55.22.

“This is on the back of the expectation that the Federal Reserve could remain hawkish, which may weaken the peso,” she explained.

Regina Capital Development Corp. head of sales Luis Limlingan added that “Philippine stocks dropped on rekindled rate hike fears that added concerns to the pace of the global economic recovery.”

Last week, the Philippines’ Monetary Board raised the key policy rate by half a percentage point to 3.75 percent.

All sectors ended in the red, with holding firms and property indices declining the most at 3.46 percent and 2.88 percent, respectively.

About 816.98 million shares valued at P5.44 billion were traded. Losers outpaced winners, 132-62, while 39 closed unchanged.

SM Prime Holdings’ shares, the most actively traded, slid 3.69 percent to P36.55 each.

This was followed by Ayala Land Inc., down 2.20 percent to P28.90; International Container Terminal Services Inc., down 1.18 percent to P184.80; Abacore Capital Holdings Inc., down 1.36 percent to P2.17; Security Bank, down 1.82 percent to P88.85; and Converge ICT Solutions, down 1.74 percent to P19.20.

Other active names were Ayala Corp., down 4.35 percent to P736.50; Emperador Inc., up 4.37 percent to P21.50; PLDT Inc., up 1.09 percent to P1,769; and BDO Unibank Inc., down 2.17 percent to P126.50. INQ