PSEi retreats below 6,000 as peso slips to new record low

MANILA, Philippines — The local stock market retreated below the 6,000 level yesterday, with profit taking triggered as the peso slipped to a new record low.

The benchmark Philippine Stock Exchange index tumbled by 0.64 per cent or 38.26 points to cap off the week at 5,976.77.

The broader All Shares index also shed 0.65 percent or 22.16 points, closing at 3,371.41.

Luis Limlingan of Regina Capital said the local bourse ended lower as investors reacted to the peso’s continued depreciation against the dollar, dampening overall market sentiment.

“The weakness of the local currency triggered profit-taking activities following the market’s gains in the previous session,” Limlingan said.

The peso sank to another record low yesterday as hotter inflation data in the United States strengthened expectations that the Federal Reserve may keep interest rates elevated for longer, keeping the dollar firm against emerging market currencies.

Data from the Bankers Association of the Philippines showed the peso closed at a fresh record low of 61.721 per dollar, weaker by 8.1 centavos from Thursday’s 61.64 finish.

The local currency opened at 61.63 and traded between 61.57 and 61.73 during the session. Trading volume fell by about 24 percent to $1.2 billion from $1.58 billion in the previous session.

AB Capital Securities, for its part, said the benchmark index slipped back below the 6,000 level as weakness in financials, holdings and mining outweighed strength in selected telco and index names.

“Selling pressure was concentrated in BPI, SM, BDO and Ayala, while ICTSI and Globe provided partial support to the index amid continued rotation into defensives and large-cap service names,” it said.

Mining and oil registered the biggest drop at 2.52 percent, while services posted the highest jump at 1.59 percent.

Total value turnover stood at P6.32 billion, higher than the previous day’s P5.01 billion.

Decliners squashed advancers, 103 to 77, while 66 issues were unchanged.