Last-minute selling dragged the local equity market amid continued risk aversion.
The Philippine Stock Exchange index was down 64.94 points to 6,265.52, a 1.03 percent drop.
The broader All Shares index was down 3.02 points or 0.08 percent to 3,675.78.
Gainers edged losers 104 to 96 with 40 stocks unchanged. Trading turnover reached P6.19 billion.
Philstocks Financial Inc. said the stock market opened the session in the green territory, “driven by the positive spillover from Wall Street and the ceasefire deal between Israel and Hamas.”
“However, investors turned cautious toward the end of the session, leading to a last-minute profit taking, which brought the bourse down,” PhilStocks said in a note to investors.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the market has been down in four of the last five trading sessions, with the PSEi posting its lowest since seven months ago, when it closed at 6,158.48 on June 21, 2024.
The peso closed at 58.61 to the dollar, weaker than 58.575 on Wednesday.
The currency opened at 58.45, hitting a high of 58.41 and a low of 58.61. Trading turnover reached $1.38 billion.
Overseas, the Indonesian rupiah hit a more than six-month low on Thursday while the South Korean won snapped a three-day winning streak after both countries’ central banks shocked investors by eschewing widely anticipated interest rate calls.
The rupiah slipped 0.4 percent to 16,383 per dollar, a level not seen since early July last year, extending a decline from the previous day when Bank Indonesia slashed its benchmark interest rate by 25 basis points, against expectations of no change to policy.
“The surprise decision to pivot back to rate cuts in the face of FX pressures seems abrupt and incongruous with BI’s prioritisation of IDR stability over the past two years,” analysts at Barclays said.
They expect the rupiah to test the 16,500 mark by the end of the first quarter.
Jonathan Koh, Asia economist and FX analyst at Standard Chartered, said BI’s retention of the language on maintaining rupiah stability “may allay some, but not all, concerns over whether it is more focused on supporting growth or keeping the IDR stable.”
“Even if BI remains focused on attracting USD inflows, investor conviction to long IDR versus the USD may be soft. Moreover, foreign bond positioning is already neutral.”
The South Korean won declined 0.2 percent, slipping from a one-week high, after the Bank of Korea held interest rates unexpectedly against economists’ expectations of a quarter-point cut.
Foreign exchange risks could be a concern for the Bank of Korea, Maybank analysts said. “Regardless, upside risks remain for USDKRW given US tariffs threats linger on the horizon.”
The surprising decision by the BOK and BI underscores challenges faced by Asian central banks as they try to spur growth and defend their currencies against a towering dollar while preparing for tariffs from the incoming administration of US President-elect Donald Trump.
Most other Asian currencies found support from a depreciating dollar, which stood just under recent peaks after cooling US inflation data knocked down bond yields.
An index of emerging market currencies edged higher, continuing on its recovery path from a six-month low touched earlier in the week.
While a rate cut from the Federal Reserve in the January 28-29 meeting is still unlikely to happen, markets are pricing in a rate cut in June this year.
A resilient economy, the threat of broad tariffs on imported goods and mass deportations of undocumented immigrants – actions that are deemed inflationary – had led the Fed to project a shallower rate-cut path this year.
Most actively traded Synergy Grid Corp. of the Philippines was up P1.10 at P13.50. BDO Unibank Inc. was down P5.80 at P138. International Container Terminal Services Inc. dropped P1 to P394. SM Prime Holdings Inc. lost P0.45 to P24.15. Ayala Land Inc. shed P0.45 to P25.75. SM Investments Corp. slid P13.50 to P821. PLDT Inc. was gained P5 to P1,315. Metropolitan Bank and Trust Co. lost P0.65 to P70. Ayala Corp. dipped P5 to P565. Bank of the Philippine Islands shed P1 to P118. (With additional reports from Reuters)
