Peso back at P58:$1; PSEi falls to 6,400
THE peso fell to its lowest in nearly 19 months on Wednesday, weakening by 45 centavos to P58.42 against the dollar as the stock market also fell further to the 6,400 level.
The currency’s close was the lowest since Nov. 7, 2022’s P58.58. It had hit an over 18-month low of P57.27:$1 a week ago.
It opened at the day’s low of P58.07:$1 and traded as high as P58.51. Volume reached P1.399 billion, up from P1.244 billion in the previous session.
“The peso weakened after the local stock market gauge, the PSEi (Philippine Stock Exchange index), declined for the 4th straight day,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.
The PSEi shed 89.93 points, or 1.38 percent, to close at 6.411.41. The broader All Shares also fell, by 0.95 percent or 33 points, to 3.451.74.
Claire Alviar, research associate at PhilStocks Financial Inc., said “sentiment was dampened by the latest Monetary Policy Report, which stated that the Bangko Sentral ng Pilipinas (BSP) sees the Philippines’ economic growth to miss the government’s target in 2024 and 2025 due to the impact of high interest rates.”
Regina Capital Development Corp.
Managing Director Luis Limlingan said “Philippine shares succumbed to more profit-taking as the index sank to 6,400 as concerns over inflation, weak demand at Treasury auction, and cautious statements from policymakers dampened sentiment.”
“Meanwhile, local investors will be assessing the BSP’s pledge for a “restrictive” policy due to inflation concerns,” he added.
All sector indices closed in the red, with financials down the most by 2.36 percent.
Decliners outnumbered advancers, 127 to 70, while 40 were unchanged.