THE peso nearly fell to the P57:$1 level and the stock market also retreated amid continued worries over the situation in the Middle East and as investors awaited policy decisions by the US Federal Reserve (Fed) and Bangko Sentral ng Pilipinas (BSP).
The currency weakened by 28 centavos to P56.98:$1 on Wednesday, its weakest close since April 14’s P57.08. It opened at P56.75:$1 and ranged from P56.7 to P56.98 with volume reaching P1.266 billion, slightly higher than Tuesday’s P1.202 billion.
The benchmark Philippine Stock Exchange index (PSEi), meanwhile, shed 31.76 points, or 0.50 percent, to end the day at 6,337.43.
A woman exchanges her US dollars for Philippine pesos in Manila. PHOTOS BY J. GERARD SEGUIA
The broader All Shares lost 11.07 points, or 0.29 percent, to 3,772.79.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened as global oil prices hit 4.5-month highs, with investors seeking safer assets amid ongoing Middle East tensions and the conflict between Israel and Iran.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “the local market pulled back as investors took a cautious stance ahead of the Federal Reserve’s policy decision.”
“Lingering concerns over the Israel-Iran tensions and their economic consequences, primarily on oil prices, also continued to weigh on sentiment,” he added.
Trading was said to be tepid with net value turnover at P4.91 billion, below the year-to-date average of P5.66 billion.
“Foreigners were net sellers with net outflows at P254.69 million,” Tantiangco said.
Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “Philippine stocks fell as the Israel-Iran conflict entered its fifth day and retail sales dropped more than expected, raising concerns about consumer spending.”
“While the Fed is expected to hold rates steady, the weak data may support a more dovish stance,” he added.
Limlingan said that locals remained on the sidelines “as they await the outcome of the latest meeting of the BSP, with many forecasting a rate cut, hoping to ease fears of further conflict escalation in the Middle East.”
All but one of the six sector indices closed in the red with financials down the most by 1.71 percent. Industrial was the sole gainer, up 0.45 percent.
Gainers edged out decliners on a company basis, 96 to 95, while 52 were unchanged. THE MANILA TIMES
