MANILA – Appetite in the local bourse was low resulting in the negative close of all counters on Thursday as the peso weakened against the US dollar.
The Philippine Stock Exchange index (PSEi) shed 0.84 percent, or 55.73 points, to 6,560.22 points.
All Shares followed with a decline of 0.81 percent, or 28.57 points, to 3,496.79 points.
Among the sectoral gauges, Holding Firms posted the biggest drop at 1.12 percent.
It was trailed by the Services and Mining and Oil, both down by 1.07 percent; Financials, 0.99 percent; Property, 0.71 percent; and Industrial, 0.30 percent.
Volume reached 715.82 million shares amounting to PHP3.95 billion.
Decliners led advancers at 113 to 53 while 59 shares were unchanged.
“Local shares were sold down on worries on the US debt ceiling negotiations,” said Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales.
He noted that this issue is the reason why Fitch Ratings has placed its outlook on the US’ "AAA" credit rating on “ratings watch negative,” which, Limlingan said, was due to risk of a default on some of US government’s obligations pending the decision on the debt ceiling talks.
Meanwhile, he said prices of oil in the international market rose “after a large unexpected drawdown in US crude inventories and a warning from the Saudi Energy Minister (Prince Abdulaziz bin Salman) that raised the prospect of further OPEC+ production cuts.”
The negative close of the PSEi was mirrored by the peso after it ended the day’s trade down to PHP56.065 to a US dollar from PHP55.77 close a day ago.
It opened the day’s trading at PHP55.79 and ranged between PHP56.11 and PHP55.74. Average level for the day stood at PHP55.916.
Volume increased to USD1.64 billion from day-ago’s USD890.3 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the peso corrected anew after the warning from Saudi’s Energy Minister, the strengthening of the US dollar despite the debt ceiling talks, and the possible cut in the domestic banks’ reserve requirement.
He forecasts the peso to trade between PHP55.95 and PHP56.15 against the greenback on Friday. (PNA)