Stocks extend slide as peso weakens past 59:$1

MANILA, Philippines —  Local shares slipped for a second straight day yesterday as renewed pressure on the peso and persistent concerns over the country’s growth outlook dampened investor sentiment.

The bellwether Philippine Stock Exchange index slipped by 0.31 percent or 18.26 points to finish yesterday’s session at 5,887.58.

The broader All Shares index also inched down by 0.18 percent or 6.14 points to 3,458.65.

Philstocks Financial research manager Japhet Tantiangco said that the local market extended its decline as the peso weakened amid rising expectations of a rate cut by the Bangko Sentral ng Pilipinas in its December meeting.

“Lingering concerns over the Philippines’ economic growth outlook also continued to weigh on sentiment,” Tantiangco said.

Total turnover value reached P6.54 billion. Market breadth was negative as decliners crushed advancers, 100 to 81, while 71 issues did not change hands.

Based on data from the Bankers Association of the Philippines, the local currency closed at 59.022, sliding by 10.2 centavos from its 58.92 finish on Wednesday.

This is the first time the peso breached the 59-to-a-dollar level in two weeks or since the 59.065 finish on Nov. 20. Still, yesterday’s close is stronger than the peso’s record-low finish of 59.17 on Nov. 12.

On Wednesday, BSP Governor Eli Remolona Jr. said the economy is likely to face a tepid expansion next year, with growth seen settling in the mid-four percent range as weak investor sentiment and government spending cuts weigh on activity.

Asked whether the weaker outlook has increased the likelihood of a policy rate cut this month, Remolona acknowledged that the odds have risen but stressed that “it’s not assured.”