Peso sinks to new low, stocks tumble anew

MANILA, Philippines — Philippine financial markets opened the week on a weak note, with the peso hitting another record low and stocks tumbling as escalating tensions in the Middle East rattled investors.

The peso extended its decline, closing at a fresh record low of 60.69 per dollar yesterday, weaker by 14 centavos from Friday’s 60.55 finish, based on data from the Bankers Association of the Philippines.

The local currency opened at 60.55, its strongest level of the day, before weakening to as much as 60.84, marking a new intraday low.

A trader said the peso’s continued weakness reflects a combination of global dollar strength and elevated oil demand, with market conditions amplifying the move.

“Peso weakness is still dollar strength plus oil demand, with thin liquidity exaggerating moves. 61 is possible but not a straight line – market is stretched,” the trader said.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said markets are pricing in a prolonged conflict, adding that the peso is likely to trade within the 60.60 to 60.90 range in the coming weeks.

Meanwhile, the benchmark Philippine Stock Exchange index plunged by 1.73 percent or 103.34 points to close at 5,869.49, while the broader All Shares index dropped by 1.2 percent or 40.01 points to 3,295.85.

Philstocks Financial research manager Japhet Tantiangco said the local market started the shortened trading week on a negative tone as the conflict in the Middle East continued, with hopes of negotiations among involved countries faltering.

Tantiangco added that elevated global oil prices and a weaker peso are fueling concerns over the country’s inflation outlook.

“Philippine equities tanked after Yemen’s Houthis entered the Middle East war by launching missile attacks on Israel, heightening investor concerns over a potential escalation and its impact on oil prices,” AP Securities Inc. said.

All sectors were in the red, except for services, which inched up by 0.03 percent. Financials led the decline with a 3.25-percent drop, followed by mining and oil, which fell by 2.42 percent.

Total value turnover stood at P8.29 billion, with decliners outnumbering advancers, 126 to 74, while 60 issues were unchanged.

ICTSI was the session’s most actively traded stock, ending flat at P693 per share. It was followed by BDO Unibank and Ayala Land, which dropped by 4.79 percent and 7.30 percent, respectively, to P113.40 and P16.26.

Meanwhile, shares of Robinsons Retail Holdings surged by 19.51 percent after trading resumed following a voluntary suspension tied to its planned delisting.