Stocks dumped as frail peso fuels inflation resurgence

The benchmark Philippine Stock Exchange Index (PSEi) retreated for a fourth consecutive session on Friday as the Philippine peso reached a new low against the US dollar, underscoring the inflationary risks harmful to economic growth.

The PSEi sank 0.41 percent, or 26.9 points, to 6,548.77 while the broader All Shares index slipped 0.64 percent, or 22.49 points, to 3,474.41.

Eyes were on the peso’s movements throughout the session after it fell below the Sept. 8 low of 57.18 against the greenback. It closed at P57.43 on Friday.

Meanwhile, the Bangko Sentral ng Pilipinas saw a wider current account balance deficit of 5 percent and 4.5 percent in 2022 and 2023, further dampening investors’ sentiments.

PSE subsectors ended mostly lower, led by sharp declines in mining and oil, property and industrial stocks.

Financials closed lower while holding firms and services rose.

PSE data showed 1.2 billion shares valued at P15.1 billion changing hands while foreigners were net buyers to the tune of P275.13 million.

SM Prime Holdings Inc. was the top traded stock as it dropped 2.05 percent to P35.75 per share. It was followed by Emperador Inc., down 3.16 percent to P19.90; Ayala Corp., down 2.21 percent to P731.50; Monde Nissin Corp., down 4.41 percent to P13.86, and BDO Unibank Inc., down 1.71 percent to P120.40 per share.

PLDT Inc. was up 5.93 percent to P1,750; San Miguel Food and Beverage Inc., down 8.86 percent to P42.70; San Miguel Corp., down 3.06 percent to P95; Ayala Land Inc., down 0.17 percent to P28.55; and Universal Robina Corp., down 1.38 percent to P121.80 per share.

Overall, there were 112 losers against 46 advancers while 46 companies closed unchanged, data from the stock exchange showed.