The peso tested the 59:$1 level yesterday before closing slightly higher while share prices tracked overseas leads and ended lower amid heightened risk aversion.
The peso closed at 58.98 to the dollar, up from Tuesday’s close of P58.99 on Tuesday. The currency opened at 58.96 and hit a high of 58.88 and a low of 59.02.
Trading turnover reached $1.2 billion.
Domini Velasquez, China Bank chief economist, said “structural flows such as remittances and upcoming IPOs may provide some support to the peso.”
“The peso reached 59 due to broad dollar strength, before closing higher. Although the peso is testing the 59 levels, and may even test 60, we think that the dollar’s strength may likely be nearing its peak,” Velasquez said.
She said the upward revision in the Fed’s terminal rate “has probably been digested by the market and other central banks have been intervening or have been vocal in being ready to intervene in the currency market, among which is the BOJ, BOE, and BSP.”
The Philippine Stock Exchange index (PSEi), meanwhile, was down by 140.39 points, a 2.33 percent drop to 5,879.68. The broader All Shares index was down 68.59 points or 2.12 percent to 3,165.64.
Losers edged gainers 156 to 49 with 39 stocks unchanged. Trading turnover reached P6.79 billion.
The PSE said Wednesday’s drop eclipsed Tuesday’s record one-day drop both in terms of points and percentage – 239.47 points or 3.87 percent.
Wednesday’s drop is the PSEi’s lowest close since dropping to 5,867.88 on Oct. 7, 2020. It brings the PSEi’s 2022 drop to 21.15 percent compared to its high of 7,458.23 last August 2.
The PSE is now down 35.09 percent from its record high of 9,058.62 recorded on January 29, 2018.
Unless the PSEi recoup all lost grounds by Friday, this will be the fourth consecutive week decline by the stock market on a weekly basis.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market’s continued drop rests on the unabated rise in interest rates globally, as well as global recession fears, joining regional indices in the bear market territory.
Claire Alviar, analyst at Philstocks Financial Inc. noted that Wednesday’s drop broke through the market’s 6,000 psychological support level.
Most actively traded SM Investments Corp. was down P30 to P733. Ayala Land Inc. was down P1.35 to P23.05. International Container Terminal Services Inc. was up P0.50 to P181.50. BDO Unibank Inc. was down P3.80 to P111.20. Bank of the Philippine Islands was up P1.45 to P90.30. Bank of the Philippine Islands was up P1.45 to P90.30. Semirara Mining and Power Corp. was down P35 to P415.60. SM Prime Holdings Inc. was down P0.15 to P32.10. Universal Robina Corp. was down P1.50 to P110.70. AC Energy Corp. was down P0.44 to P5.51. Ruel Castro, Reuters
