Anemic peso drags PSEi back to 6,700

The weak peso prompted investors to sell off their positions yesterday, pushing the Philippine Stock Exchange index (PSEi) back to the 6,700 territory.

The benchmark index dropped 1.53 percent, or 104.27 points, to settle at 6,702.59 while the broader All Shares Index slipped 0.96 percent, or 36.46 points, to close at 3,760.08.

Philstocks Financial Inc. senior analyst Japhet Tantiangco said the peso, which continued to play with its all-time low of P59 against the dollar, had dragged investor sentiment.

“The local market extended its decline as investors continued to digest the latest tariff threats from president-elect Donald Trump against China, Canada and Mexico,” he added. Imposing tariffs on goods can put pressure on consumer prices, translating to higher inflation that decreases a currency’s buying power.

All subsectors ended in the red. Holding firms and property indices were the biggest losers after dropping by 2.40 percent and 1.61 percent, respectively.

About 375.48 million shares valued at P4.27 billion were traded. Losers led gainers, 125 to 60, while 49 issues were unchanged.

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The most actively traded shares were that of International Container Terminal Services Inc., which declined by 1.28 percent to P385 each.

It was followed by BDO Unibank Inc., up 0.13 percent to P153.10; Bank of the Philippine Islands, down 1.88 percent to P130.50; Ayala Corp., down 3.50 percent to P619.50; Ayala Land Inc., down 2.36 percent to P29; and PLDT Inc., down 2.57 percent to P1,290.

Other active names were SM Investments Corp., down 2.44 percent to P879; SM Prime Holdings, down 1.64 percent to P27; Metropolitan Bank & Trust Co., down 0.84 percent to P77; and DigiPlus Interactive Corp., up 1.71 percent to P20.80.