Share prices ended lower Tuesday on profit-taking while the peso slid to its lowest in nearly 18 years.
The Philippine Stock Exchange index (PSEi) was down 0.61 percent or 38.7 points to 6,349.94.
The broader all shares index was down 0.35 percent or 11.87 points to 3,409.91.
Losers edged gainers 105 to 82 with 49 stocks unchanged. Trading turnover reached P4.19 billion.
The peso closed at 56.37 to the dollar, down from 55.979 on Monday and the weakest for the peso since November 5, 2004, when it closed at 56.375.
It opened at 56.13, hitting a high of 56.13 and a low of 56.45.
Trading turnover reached $1.39 billion.
Asia’s emerging market currencies extended losses on Tuesday, with the peso slumping to a nearly 17-year trough, as a global decline in risk appetite and fresh COVID-19 curbs in China continued to weigh on sentiment, Reuters reported.
Narrowing interest rate differentials have weighed heavily on most Asian currencies in recent months, with the peso down 10 percent this year.
The BangkoSentral ng Pilipinas is under pressure to raise interest rates further to tame inflation, which surged to a nearly four-year high in June.
“If you look at Asia Pacific in general, currencies that have been the weakest are those where policy rates have not closed the gap with inflation,” said Robert Carnell, head of research for Asia Pacific at ING.
The central bank recently said it was paying close attention to “strong depreciation pressures” on the peso, adding that they are prepared to raise rates by 50 basis points at its August meeting.
Mounting fears of a global recession have forced investors to flee stocks and riskier Asian assets in favor of bonds and the greenback.
Claire Alviar, analyst at Philstocks Financial Inc., said the market declined amid profit taking after the market hit its resistance at 6,400.
“Also, the widening of the country’s trade deficit in May brought negative sentiment as it may weaken the peso further,” Alviar said.
She said investors continue to be concerned about the weakening peso and its inflationary risk at home.
“This negatively affects investors’ sentiment, especially amid the rising inflation. Moreover, negative sentiment from the US also spilled over to the Asian markets, including the Philippines,” she said.
Most actively traded Ayala Land Inc. was down P0.20 to P25.25. Semirara Mining and Power Corp. was down P1.10 to P38. International Container Terminal Services Inc. was down P5.40 to P184.
SM Investments Corp. was down P25 to P813. BDO Unibank Inc. was up P2.20 to P122. Ayala Corp. was down P24 to P620. Converge ICT Solutions Inc. was up P0.15 to P21.55. JG Summit Holdings Inc. was up P0.85 to P50.80. Monde Nissin Corp. was up P0.14 to P13.52. Bank of the Philippine Islands was up P0.20 to P89.
