PSEi shedding longest in 8 years; peso closes at 57

By Kris Crismundo

April 16, 2024, 6:56 pm

MANILA – Investors were concerned about the increasing tension in the Middle East and the upside risks to inflation, bringing the local bourse to its longest losing streak in eight years.

Meanwhile, the Philippine peso finished at the 57-level on Tuesday.

The Philippine Stock Exchange index (PSEi) plunged to 6,404.97, shedding 157.46.

“Philippine shares experienced the largest sell off year-to-date as the market touched the 6,400 level, falling 2.4 percent,” Regina Capital Development Corp. head of sales Luis Limlingan said.

All Shares, likewise, plummeted by 1.96 percent to 3,409.85.

“The bourse has now dropped for nine consecutive days which has been the longest losing streak since October 2016,” Philstocks Financial, Inc. research and engagement officer Mikhail Plopenio said.

All sectoral indices closed in the red territory, with Service being the biggest loser for this day’s trading. Its counter dropped 3.27 percent to 1,784.33.

It was followed by Industrial, down by 2.74 percent; Holding Firms, contracting by 2.42 percent; Financials (-1.64 percent); Property (-1.59 percent); and Mining and Oil (-1.36 percent).

“(I)nvestors were weighed by negative factors offshore and at home. The continuous selloff was due to the increasing tensions in the Middle East and worries regarding possibly delayed rate cuts by the BSP (Bangko Sentral ng Pilipinas) amid upside risks to inflation. The negative cues from Wall Street amid rising treasury yields also contributed to the market’s drop,” Plopenio added.

He said net outflows of foreign traders amounted to PHP1.19 billion.

On the other hand, net market value turnover stood at PHP6.16 billion, higher than the year-to-date average of PHP5.08 billion.

Losers led gainers a 154 to 41, leaving 45 counters unchanged.

Meanwhile, the peso further depreciated on Tuesday, finishing at 57 to a US dollar.

The local currency shed 0.19 to the greenback.

It opened the day weak at 56.85 from last day’s kick-off at 56.65 to a dollar.

The currency pair traded between a low of 56.85 to a high of 57, bringing the average level for the day at 56.97 to a dollar.

Volume of trade declined to USD1.1 billion from USD1.59 billion on Monday. (PNA)