Weak peso pulls PSEi down
MANILA, Philippines — Investors turned their sights on the depreciating peso on Friday, leading to another red day at the bourse despite the Bangko Sentral ng Pilipinas’ (BSP) surprise rate cut.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) had lost 0.32 percent or 19.61 points to end at 6,037.79.
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Likewise, the broader All Shares Index shed 0.23 percent or 8.57 points to close at 3,658.44.
Trading was thin with 1.51 billion shares worth P6.34 billion changing hands as investors stayed cautious, stock exchange data showed.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said traders were focused on the depreciation of the local currency against the greenback, thus dampening overall sentiment.
The peso remained at 58 against the US dollar on Friday.
This, despite the BSP’s move to slash the benchmark rate for overnight borrowing a fourth time this year. It is now down to 4.75 percent, its lowest rate since September 2022.
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Meanwhile, AP Securities Inc. said the BSP Governor Eli Remolona Jr.’s dovish statements may have also affected confidence. This, especially due to the controversy on the flood control projects and its negative impact on the economy.
Mining firms saw the steepest decline after days of gains.
Top-traded stock Ayala Corp. lost 2.89 percent to close at P471, followed by BDO Unibank Inc., down 1.17 percent to P134.80; International Container Terminal Services Inc., flat at P526; Manila Electric Co., up 1.92 percent to P558; and Philex Mining Corp., down 3.45 percent to P10.06 each.
Losers edged out gainers, 97 to 79, while 65 companies closed flat, stock exchange data also showed. /rwd
