Share prices ended lower Thursday on risk aversion as the peso dipped to a 17-year low.
The Philippine Stock Exchange index (PSEi) was down 1.44 percent or 92.69 points to 6,352.32.
The broader all shares index was down 1.09 percent or 37.51 points to 3,405.39.
Losers edged gainers 103 to 68 with 51 stocks unchanged. Trading turnover reached P4.69 billion.
The peso closed at 56.06 to the dollar, down from 55.67 on Wednesday.
The currency opened at 55.90 and hit a high of 5.78 and a low of 56.09. Trading turnover reached $1.11 billion.
The peso closed at its lowest since Sept. 27, 2005, when it closed at 56.295, said Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC).
It was reported that the country’s reserve dipped to a new 1.5-year low.
“The peso was weaker amid stronger US dollar against major global currencies recently after hawkish signals from the latest Fed/FOMC minutes on Fed officials’ commitment to more aggressive/restrictive monetary tightening,” Ricaforsaid.
Regional currencies were mixed against a strong dollar.
Wall Street closed higher while oil continued to slide overnight as investors digested new clues on the US central bank’s approach to rate policy and its inflation fight detailed in the minutes from the latest Fed meeting.
Japhet Tantiangco, analyst at Philstocks Financial Inc., said the market dropped after a four-day hike, with investors taking profit.
“The peso’s depreciation to the 56 level, and concerns over a possible aggressive monetary tightening of the Bangko Sentral ng Pilipinas to temper inflation and support the local currency fueled the negative sentiment,” he said.
Most actively traded Ayala Land Inc. was down P0.75 to P26.15. International Container Terminal Services Inc. was down P8.10 to P186.20. BDO Unibank Inc. was down P3.20 to P116.30. Monde Nissin Corp. was down P1.04 to P13.36. PLDT Inc. was down P65 to P1,693. Ayala Corp. was up P4 to P654. SM Investments Corp. was up P5 to P844. SM Prime Holdings Inc. was down P0.50 to P37.25. Emperador Inc. was down P0.20 to P17.70.
Converge ICT Solutions Inc. was up P0.25 to P21.20.
