Weak peso, rising oil prices pull down PSEi

Local stocks dropped below the 6,400 level on Wednesday, dragged down by the further depreciation of the Philippine peso as well as oil price concerns.

By the end of the trading session, the Philippine Stock Exchange index (PSEi) slid by 0.3 percent or 18.95 points to finish at 6,389.81.

The broader All Shares Index likewise dipped, although just 0.07 percent or 2.44 points to 3,635.94.

Financials and services recorded losses. But this was cushioned as conglomerates and miners provided support.

“The PSEi fell for a second straight session, breaking below 6,400 as the peso hit fresh record lows and sparked renewed profit-taking,” AB Capital Securities said in its market report.

The local currency closed at 59.44 against the greenback on Wednesday.

“Despite the softer close, turnover stayed healthy and foreign investors remained net buyers for a ninth session, reinforcing a rotational tone as flows favored conglomerates and mining amid FX headwinds,” it added.

Philstocks financial research manager Japhet Tantiangco said market sentiment was also “dampened” amid the conflict in Iran, triggering an increase in global crude prices.

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Tantiangco said trading was “active” with net value turnover at P6.63 billion.

JG Summit Holdings Inc. led the key index, with its share price climbing 4.8 percent to P26.20. China Banking Corp. was the main laggard, falling 3.72 percent to P60.70.

Losers outnumbered winners at 97 to 95, with 71 issues unchanged.