Weaker peso drags local bourse

By Kris Crismundo

May 21, 2024, 6:22 pm

MANILA – The Philippine peso on Tuesday further depreciated to the 58-level, slashing gains of local shares during the previous day’s trading.

The Philippine Stock Exchange index (PSEi) ended lower by 0.74 percent at 6,633.66, while All Shares declined by 0.36 percent to 3,535.77.

Philstock Financials, Inc. research and engagement officer Mikhail Plopenio said investors’ worry over a weaker peso against the US dollar dragged the local bourse’s performance.

“The Philippine peso breached the PHP58-per-dollar mark, which has been the lowest in nearly two years. Also, the lack of strong positive leads weighed on the market,” Plopenio said.

Except for Services, which grew by 0.77 percent, the rest of the sectoral indices shed shares on Tuesday's trading.

The biggest losses came from the Property counter, down by 1.28 percent; followed by Holding firms, down by 1.10 percent; Financials, down by 1.09 percent; Mining and Oil, down by 0.53 percent; and Industrial, down by 0.53 percent.

Decliners outpaced advancers at 99 to 86, with 48 counters left unchanged.

Meanwhile, the peso closed at 58.27 against the US dollar, shedding 0.37.

The peso last hit the same level on Nov. 8, 2022.

In a statement, Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. said the dollar strengthened after the Federal Reserve signaled to delay the easing of its monetary policy.

It kicked off the day weak at 57.97 from a start of 57.68 the previous day.

It traded between 57.97 and 58.28, bringing the average level for the day to 58.12 to the greenback.

Volume of trade jumped to USD1.62 billion from USD1.21 billion on Monday. (PNA)