Share prices fell Wednesday on risk aversion.
The peso closed up.
The Philippine Stock Exchange index was down 19.31 points to 7,437, a 0.26 percent drop.
The broader All Shares index was up 11.11 points or 0.27 percent to 4,097.56.
Losers edged gainers 101 to 86 with 75 stocks unchanged. Trading turnover reached P6.95 billion.
The peso closed at 57.70 to the dollar, up from 57.865 on Tuesday.
The currency opened at 57.90 and hit a high of 57.70 and a low of 57.92. Trading volume amounted to $1.38 billion.
Asian currencies recovered some ground on Wednesday, led by the Indonesian rupiah and Thailand’s baht, as investors braced for pivotal monetary policy decisions from Indonesia, Thailand, and the Philippines.
The Bangko Sentral ng Pilipinas (BSP) decided to cut policy rates by 25 basis points anew to 6 percent.
The dollar index, which measures the currency against six major rivals, was steady at 103.25, sticking close to Monday’s high of 103.61, a level unseen since Aug. 8. This kept a lid on gains for emerging market currencies.
Investors expect central banks in the region to ease monetary policies gradually.
“In terms of FX market reactions, market players are expecting gradual rate cuts from Asian central banks. So, rate cuts from BSP and BI (Bank Indonesia) might not hurt PHP (Philippine peso) and (Indonesian rupiah) that much,” said Poon Panichpibool, a markets strategist at Krung Thai Bank.
With inflation now below the target range of 2 percent to 4 percent, the Philippine central bank is anticipated to continue its easing cycle that began in August, likely reducing the overnight borrowing rate by 25 basis points to 6 percent and potentially implementing another cut in December.
Japhet Tantiangco, analyst at Philstocks Financial Inc., said the market declined with the peso’s weakness seen as a weighing factor.
“Spillovers from Wall Street’s overnight decline also weighed on Wednesday’s trading,” he said.
Most actively traded BDO Unibank Inc. was up P1 to P162. Puregold Price Club Inc. was up P1.45 to P34.45. Robinsons Land Corp. was up P0.74 to P16.74. Manila Water Co. Inc. was up P0.50 to P27.50. Bank of the Philippine Islands was steady at P140.60. DMCI Holdings Inc. was up P0.68 to P12.40. International Container Terminal Services Inc. was down P1.40 to P407. Metropolitan Bank and Trust Co. was steady at P81.50. PLDT Inc. was up P4 to P1,520. Semirara Mining and Power Corp. was steady at P34.
