Share prices closed lower Monday on lack of strong leads, causing investors to take profit instead.
The peso closed down.
The Philippine Stock Exchange index was down 6.48 points to 6,228.29, a 0.1 percent drop.
The broader All Shares index was down 1.93 points or 0.06 percent to 3,327.65.
Losers edged gainers 118 to 48 with 64 stocks unchanged. Trading turnover reached P4.06 billion.
The peso closed at 55.65 to the dollar, down from 55.30 on Friday. The currency opened at 55.57 and hit a high of 55.53 and a low of 55.665. Trading turnover reached $888.8 million.
Asian emerging currencies and equities retreated on Monday ahead of key central bank meetings during the week, with investors’ focus mainly on US inflation reading and the Federal Reserve’s final policy meeting for the year.
Data from Thailand, Philippines, and South Korea last week showed that inflation had eased in November, likely providing central banks a little breathing room in terms of rates.
The Bangko Sentral ng Pilipinas (BSP), however, cautioned it was necessary to keep monetary policy settings “sufficiently tight.”
The BSP’s monetary policy decision is due on Thursday.
The Fed is expected to keep rates in the current 5.25 percent-5.50 percent range in its monetary policy decision later this week, leaving policy on hold since July.
US inflation data for November is due on Tuesday, with the market expecting consumer prices to continue easing on an annual basis.
Data showed last week US job growth accelerated in November, causing traders to reevaluate expectations of Fed rate cuts early next year.
Claire Alviar, analyst at Philstocks Financial Inc. said investors digested the statement of the BSP Governor Eli Remolona Jr. that it is premature to discuss policy easing in 2024, “prompting negative sentiment due to potential adverse impacts on the economy with prolonged elevated interest rates.”
Most actively traded BDO Unibank Inc. was down P3.50 to P123.40. Bank of the Philippine Islands was down P2.40 to P99.50. Ayala Land Inc. was up P0.55 to P31.95. International Container Terminal Services Inc. was steady at P229. SM Prime Holdings Inc. was up P0.05 to P32.70. Bloomberry Resorts Corp. was up P0.01 to P9.61. SM Investments Corp. was up P9 to P835. GT Capital Holdings Corp. was down P12.50 to P544.50. Emperador Inc. was down P0.15 to P20.65. Universal Robina Corp. was down P0.90 to P111.90.
