Share prices closed lower Thursday on continuing risk aversion.
The peso closed down as well.
The Philippine Stock Exchange index (PSEi) ended 46.78 points lower, a 0.72 percent drop to 6,430.58.
The broader all shares index was down 14.45 points or 0.42 percent to 3,443.85.
Losers edged gainers 105 to 78 with 50 stocks unchanged. Trading turnover reached P5.41 billion.
The peso closed at 56.26 to the dollar, down from 56.15 on Wednesday.
The currency opened at 56.23 and hit a high of 56.155 and a low of 56.31. Trading turnover reached $990.35 million.
Most Asian currencies rose against a retreating greenback on Thursday, driven by receding bets of a US rate hike this month and relief over a surprise swing back to growth in a private survey of Chinese factory activity, Reuters reported.
Asian economies are heavily reliant on the strength of China’s economy, which has been wavering as a post-COVID recovery loses momentum.
“A key part of the rebound in Asian currencies today relates to the surprise swing back to growth in Chinese factory activity, which follows yesterday’s selling in the yuan and Asian currencies after disappointing official PMI data,” said Khoon Goh, head of Asia research at ANZ.
Meanwhile, the dollar retreated from a two-week top against major peers as Federal Reserve officials on Wednesday pointed towards a rate hike “skip” in June, even as the passing of the US debt ceiling bill in the House of Representatives gave safe haven support to the greenback.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market retreated as investors kept an eye on the federal debt ceiling debate in the US.
“The measure passed a key procedural hurdle in the House on Wednesday, clearing its path to a final vote on the floor later in the evening. Congress is rushing to approve the measure by Monday, the earliest date the US risks a sovereign default,” he said.
Claire Alviar, analyst at Philstocks Financial Inc., said foreign funds continued to exit the market with net foreign selling at P475.68 million.
Most actively traded BDO Unibank Inc. was up P1 to P137. Ayala Corp. was down P15 to P645. SM Prime Holdings Inc. was down P0.20 to P32.50. Monde Nissin Corp. was down P0.12 to P7.98. Ayala Land Inc. was down P0.45 to P25.85. International Container Terminal Services Inc. was up P6 to P201. SM Investments Corp. was down P19 to P910. JG Summit Holdings Inc. was steady at P48. Globe Telecom Inc. was steady at P1,700. PLDT Inc. was up P9 to P1,209.
