Share prices ended lower Monday as risk aversion hit investors amid the rise in corona virus disease 2019 (COVID-19) cases.
The Philippine Stock Exchange index (PSEi) was down 41.5 points to 6,591.67, a 0.63 percent drop.
The broader all shares index was down 12.76 points to 4,110.96, a 0.31 percent drop.
Losers edged gainers 105 to 87 with 45 stocks unchanged. Trading turnover reached P6.29 billion.
The peso closed at 50.27, up from 50.37 on Friday. It opened at 50.30, hitting a high of 50.15 and a low of 50.33. Trading turnover reached $717.65 million.
The South Korean won led gains among emerging Asian currencies on Monday ahead of a central bank meeting this week, while Taiwanese stocks rose over 2 percent after the island began rolling out its first domestically developed COVID-19 vaccine, Reuters reported.
Currency markets strengthened after Dallas Federal Reserve President Robert Kaplan, among the US central bank’s most forceful supporters for starting to reduce support for the economy, said on Friday he may need to adjust that view if the Delta variant slows economic growth materially.
“Fears of a sharp global growth de-rating and/or faster than expected Fed normalization may be overdone… a case of Fed deferring its announcement to taper could see USD ease off,” Maybank analysts said in a note.
The Bank of Korea’s rate decision will be in focus this week after it gave strong indications last month an end to its run of pandemic era, record-low interest rates was coming.
The South Korean won rose as much as 0.6 percent against the greenback.
Mike Ricafort, Rizal Commercial Banking Corp. chief economist, said the peso ended strong against the dollar in more than two weeks after global oil price reached new 3-month lows.
“The peso was also stronger after the country’s vaccination vs. COVID-19 already breached above the 30 million mark and Metro Manila nearing population protection threshold. It also appreciated after the more dovish signals by Dallas Fed President Kaplan saying he is open to revise tapering view due to the Delta variant,” he also said.
Luis Limlingan, managing director at Regina Capital and Development Corp., said “Philippine shares continued to trade weaker after last week’s run up as investor continue to vigilantly watch the Covid-19 cases worldwide and how they would affect economic recovery in the short to medium term.”
“In addition, many are assessing the proposed budget released by the DBM (Department of Budget and Management) for congressional approval. For 2022, the plan is for P5.024 trillion, which is 11.5 percent higher than last year, and almost 1/4 of GDP. Close to P50 billion of this will be for Covid-19 booster shots,” he said.
Most actively traded Converge Information and Communication Technology Solutions Inc. was up P1.0 5 to P30.45. Ayala Corp. was down P8 to P710. International Container Terminal Services Inc. was up P2 to P180. AC Energy Corp. was up P0.16 to P9.11. Globe Telecom Inc. was up P16 to P2,172. JG Summit Holdings Inc. was up P1.50 to P63.60. SM Investments Corp. was down P12 to P965. SM Prime Holdings Inc. was down P0.60 to P33.15.
