Share prices edged lower Tuesday tracking overseas leads.
The peso closed lower.
The Philippine Stock Exchange index was down 82.49 points, a 1.25 percent drop to 6,510.67.
The broader all shares index was down 35.36 points or 1.01 percent to 3,475.05. Losers edged gainers 127 to 42 with 43 stocks unchanged. Trading turnover reached P4.46 billion.
The peso closed at 56.31 to the dollar, down from 56.12 on Monday. The currency opened at 56.07 and hit a high of 56.05 and a low of 56.44. Trading turnover reached $1.39 billion.
Asian currencies edged lower after investors flocked to the dollar on Tuesday, while markets weighed the implications of the US debt ceiling deal and expectations of weak data from China’s industrial sector dented risk appetite, Reuters reported.
“With optimism around China’s reopening growth momentum fading, the potential spillovers into various other economies, whether through price or volumes, is being questioned again,” analysts at Barclays said in a note.
A deal to lift the United States’ $31.4-trillion debt limit announced by the White House and House Republicans late Saturday would avert a catastrophic US default, but some investors are wary that proposed spending cuts could weigh on growth.
“The new fiscal limits could be something the Fed will need to consider at the upcoming June policy meeting as well,” Maybank analysts said.
Claire Alviar, analyst at Philstocks Financial Inc., said investors preferred to take some gains while waiting for the US Congress’ vote on its debt ceiling deal.
Juan Paolo Colet, managing director at China Bank Capital Corp., said there was a significant foreign selling as various institutional investors rebalanced portfolios ahead of the effectivity of MSCI adjustments and with the trading month drawing to a close.
Most actively traded Ayala Corp. was down P12 to P680. SM Prime Holdings Inc. was down P0.40 to P33.85. SM Investments Corp. was down P9.50 to P910.50. BDO Unibank Inc. was down P0.70 to P134.30. Monde Nissin Corp. was down P0.32 to P8.20. Figaro Coffee Group Inc. was up P0.01 to P0.69. Metropolitan Bank and Trust Co. was dow P1.25 to P57.15.
Metropolitan Bank and Trust Co. was down P1.25 to P57.15. Universal Robina Corp. was down P4.90 to P143.10. Ayala Land Inc. was down P0.25 to P26.25. Bank of the Philippine Islands was down P2.30 to P100.70.
