Stocks weighed down by peso depreciation, economic woes
Several negative developments, including tough economic forecasts, a rise in jobless rate and a weaker peso, led to a decline in the capital index on Wednesday.
By the end of the trading session, the Philippine Stock Exchange Index (PSEi) fell by 0.28 percent, or 16.70 points, to finish at 5,959.94.
The broader All Shares Index also ended in the red, although just a dip by 0.1 percent, or 3.51 points, to 3,462.70.
Mining and oil, property, and industrial counters still booked gains. Conglomerates, meanwhile, dropped 0.54 percent.
Trading was also tepid with net value turnover at P5.81 billion.
“The index pulled back after a two-day rally as the peso hit a record low and investors stayed cautious ahead of rate cut decisions from the Fed (US Federal Reserve) and BSP (Bangko Sentral ng Pilipinas) on Thursday,” AB Capital Securities said.
The Philippine peso plunged to its weakest level in history on Tuesday, reaching 59.22 against the US dollar.
Based on the “Asia Strategy Outlook 2026” released earlier this month, Deutsche Bank said there was a possibility that the local currency could even crash to the 60 level against the greenback due to “worsening sentiment.”
Aside from the depressing movement of the peso, Philstocks financial research manager Japhet Tantiangco also cited other factors influencing trading: weak Philippine economic growth projections, the decline in September foreign investments, as well as the increase in unemployment rate.
Metropolitan Bank and Trust Company was the top index gainer, jumping 2.8 percent to P66 per share.
Converge ICT Solutions Inc. recorded the worst performance, sliding 3.23 percent to P14.36.
Losers continued to dominate winners at 100 to 93, while 63 names were unchanged.
