Share prices fell Monday on risk aversion.
The peso also closed down.
The Philippine Stock Exchange index was down 37.17 points to 6,940.01, a 0. 53 percent drop.
The broader All Shares index was down 16.78 points or 0.43 percent to 3,867.02.
Losers edged gainers 118 to 70 with 55 stocks unchanged. Trading turnover reached P3.84 billion.
The peso closed 58.595, down from 58.26 on Friday.
The currency opened at 58.45 and hit a high of 58.45 and a low of 58.64. Trading turnover reached $1.31 billion.
Emerging Asian currencies declined Monday after stimulus measures from China failed to meet expectations of investors, who were also disappointed by recent economic data, Reuters reported.
China unveiled a 10 trillion yuan ($1.4 trillion) debt package on Friday but did not announce any direct stimulus measures into the struggling economy.
Analysts at Maybank said in a note the move “potentially preserves room to respond to any measures the Trump 2.0 administration may roll out against China.”
Donald Trump’s return to the White House has made investors wary given that he has promised to impose new and potentially hefty tariffs on goods from countries including China and Mexico.
“The broad-based tariff hikes will dampen exports outlook next year. Alongside USD (dollar) strength and higher USD, EM (emerging market) Asia currencies will remain under pressure,” Ken Cheung, chief Asia FX strategist at Mizuho Bank said.
Investors are now awaiting US inflation data due later in the week to gauge the probability of a rate cut by the Federal Reserve in December.
Luis Limlingan, managing director at Regina Capital and Development Corp., said investors are still digesting the latest foreign direct investments data released by the Bangko Sentral ng Pilipinas, which showed a drop of 14.5 percent to $813 million in August, “indicating potential caution among foreign investors.”
“Meanwhile, gold prices fell on Friday, marking their largest weekly drop in five months. This decline, with spot gold down by 0.80 percent to $2,684.03 per ounce, was largely due to a stronger dollar and market reactions to Donald Trump’s presidential victory, which has stirred speculation about possible increases in US interest rates,” Limlingan said.
Most actively traded BDO Unibank Inc. was up P2 to P149. International Container Terminal Services Inc. was down P2.60 to P390. SM Prime Holdings Inc. was down P0.70 to P27.90. Ayala Land Inc. was up P0.60 to P31.60. SM Investments Corp. was dow P1 to P915. Bank of the Philippine Islands was steady at P138. Aboitiz Power Corp. was up P0.05 to P37.55. Universal Robina Corp. was down P2.55 to P95.95. JG Summit Holdings Inc. was down P0.30 to P23.70.
