Share prices closed little changed on Monday as investors kept to the sidelines waiting for a policy statement from US President-elect Donald Trump who is about to take his oath of office tonight (Philippine time).
The Philippine Stock Exchange index (PSEi) edged lower by 2.23 points or 0.04 percent to close at 6,349.89.
The broader All Shares index dipped 0.87 points or 0.02 percent to 3,702.86.
Losers outpaced gainers 105 to 98 as 48 stocks closed unchanged. Trading turnover reached P3.81 billion.
The market opened lower due to the Trump factor, according to stock brokerage Philstocks Financial Inc.
“In particular, investors are waiting for the incoming US president’s policies during his first few days in the office,” said Japhet Tantiangco, analyst at Philstocks.
Reports also have it that the Marcos administration expects to miss its economic growth target for 2024, leaving investors with no impetus to trade.
The market’s blue Monday also fed on the first round of the maximum suggested retail price for imported rice ahead of a government move to declare a food security emergency for rice this month, said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
Market players are also concerned about higher fuel prices starting today, according to First Metro Securities Corp.
Fuel retailers are raising the price per liter of gasoline by P1.65, P2.70 for diesel and P2.50 for kerosene starting today on fears of a backlash from US sanctions against Russian oil products.
The peso closed at 58.52 to the dollar, up from 58.64 on Friday. The unit opened at 58.52 before trading higher at 58.45 and moving lower at 58.60. Trading turnover reached $1.23 billion.
Most Asian currencies showed strength against the greenback on Monday, supported by a pause in the dollar rally ahead of Trump’s inauguration.
China kept its lending rates unchanged for the third consecutive month, as expected, due to concerns over yuan weakness. Yuan appreciated 0.1 percent.
The MSCI’s index, which tracks emerging market currencies, rose 0.2 percent to its highest in two weeks.
The Singaporean dollar rose 0.4 percent to its strongest level against the greenback in two weeks, ahead of the Monetary Authority of Singapore’s (MAS) policy decision this week. Analysts widely expect the MAS to ease its monetary policy in its January meeting.
Trump will take the oath of office at noon Eastern Time (1700 GMT), and markets globally are likely to be on a high alert for any whiff of tariff policy announcements during the early hours of his second presidential term.
Kunjal Gala, London-based head of global emerging markets at Federated Hermes, played down the impact of tariffs stating they will primarily be used as a negotiating tactic.
“Despite the negative headlines, we do not believe that a Trump presidency 2.0 will undermine the structural growth drivers that support EM,” Gala said.
Thailand’s baht gained 0.6 percent to its highest level since Jan. 2. Indonesia’s rupiah, the worst-performing unit so far this year, inched lower.
This week, investors are awaiting an interest rate decision from the Bank Negara Malaysia, where the central bank is likely to keep its overnight rates unchanged at 3 percent.
These policy decisions will follow rate moves from Bank of Indonesia and Bank of Korea last week, which diverged from market expectations, underscoring the trade-off between growth and currency stability faced by Asian central banks.
Most actively traded SM Investments Corp. dropped P5 to P830. BDO Unibank Inc. added P1.20 to P146.20. Ayala Land Inc. declined P0.55 to P25.25. Synergy Grid Corp. of the Philippines gained P0.60 to P13.50. International Container Terminal Services Inc. slipped by P3 to P396. Manila Electric Co. rose P4 to P495. SM Prime Holdings Inc. lost P0.50 at P24.10. Converge ICT Holdings Inc. rose by P0.58 to P17.54. Metropolitan Bank and Trust Co. advanced by P0.95 to P71.20. Universal Robina Corp. dipped by P0.20 to P68.80. — with a report from Reuters
