MANILA – The local bourse’s main index ended Wednesday in the negative territory on worries whether the Federal Reserve’s measures are working but the peso improved to its nearly four-month high against the United States dollar.
The Philippine Stock Exchange index (PSEi) shed 2.24 percent, or 149.22 points, to 6,525.16 points.
All Shares went down by 1.49 percent, or 51.86 points, to 3,425.86 points.
Most of the sectoral indices also declined namely Property, 3.33 percent; Holding Firms, 2.60 percent; Financials, 1.98 percent; and Industrial, 1.57 percent.
On the other hand, Mining and Oil rose by 0.84 percent and Services by 0.61 percent.
Volume reached 498.99 million shares amounting to PHP6.05 billion.
Decliners led advancers at 104 to 68, while 47 shares were unchanged.
“Philippine shares tumbled on worries that the Fed wouldn’t be able to engineer a soft landing,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
He said that “investors await more economic data this week for clues on what to expect from the Fed” and among these is the weekly report on mortgage loan applications.
Oil prices also fell below USD80 per barrel, the first since January this year, “weighed by growing concerns about global demand.”
Brent crude oil futures slipped by 4.03 percent to USD7935 per barrel and the West Texas Intermediate (WTI) by 3.48 percent to USD74.26 per barrel.
Meanwhile, the local currency gained against the greenback after it finished the day at 55.45 from 55.975 a day ago.
It opened the day at 55.85, better than its 56.06 start in the previous session.
It traded between 55.85 and 55.45, resulting in an average of 55.611.
Volume reached USD1.16 billion from the previous day’s USD776.56 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the local currency improved to its nearly four-month high when it closed to 55.30 last Aug. 11.
Ricafort attributed this development to the higher inflows of overseas Filipino workers (OFW) remittances ahead of the holiday celebrations, the drop in crude oil prices in the international market to below USD80 per barrel and the improvement in employment situation in the country.
There will be no trading on Dec. 8 which is the Feast of the Immaculate Conception.
For Friday, Ricafort eyes the peso to trade between 55.30 to 55.60. (PNA)