Share prices ended down Monday, tracking overseas leads while the peso dropped back to the 59 level to the dollar.
The Philippine Stock Exchange index (PSEi) was down 99.61 points, a 1.68 percent drop, to close at 5,832.58.
The broader all shares index was also down, shedding 51.49 points or 1.61 percent to 3,149.10.
Losers edged gainers 158 to 36 with 37 stocks unchanged. Trading turnover reached P2.53 billion.
The peso went back to its all-time low of 59 to the dollar, down from 58.92 on Friday. It opened at 58.98, hitting a high of 58.95 and a low of 59.98. Trading turnover reached $402 million.
Most Asian currencies weakened against dollar on Monday, as strong US jobs data raised the chances of further Federal Reserve interest rate hikes, casting a cloud on global growth, Reuters reported.
Luis Limlingan, managing director at Regina Capital and Development Corp., noted the market dropped on “very low value turnover.”
The US market is on holiday Monday night in observance of a federal holiday, he said.
“Sentiment was also dragged by the performance before the weekend – U.S. equities fell on Friday as traders evaluated September’s jobs report, which showed the unemployment rate continuing to decline and sparked an increase in interest rates. Friday’s losses trimmed the gains for what started out as a big comeback week for stocks,” Limlingan also said.
Most actively traded Ayala Land Inc. was down P0.4 to P23. Bank of the Philippine Islands was down P0.05 to P92.95. Ayala Corp. was down P20 to P610. BDO Unibank Inc. was down P1.30. SM Prime Holdings Inc. was down P0.30 to P31.15. Semirara Mining and Power Corp. was down P0.15 to P40.25. Emperador Inc. was steady at P40.25. Coverge ICT Solutions INc. was down P0.80 to P12.20. GT Capital Holdings Inc. was down P10 to P390. International Container Terminal Services Inc. was down P0.10 to P177.5.
Unemployment in September fell further, data from the US showed, which points to a tight labor market, while job growth slowed moderately.
“A surprising drop in the unemployment rate and another solid wage growth have boosted market expectations for a fourth 75-bps rise at the November 1-2 FOMC (Federal Open Market Committee) meeting,” said Gao Qi, a currency strategist at Scotiabank.
The Thai baht, which he said was a “high-beta” currency, tumbled 1.4 percent to trade at 37.9 to the dollar. The Indonesian rupiah fell 0.3 percent, and the Singapore dollar weakened 0.1 percent.
The greeenback further strengthened after the jobs data, with the dollar index rising 0.5 percent late on Friday, and adding another 0.1 percent Monday. The index was last seen at 112.861.
Malaysia’s prime minister said the parliament was dissolved, with the dates of a snap election yet to be decided. The ringgit did not trade on account of a public holiday.
The prospect of further US rate hikes also sent the country’s benchmark yield 6.1 basis points (bps) higher to 3.885 percent on Friday. Asian yields followed suit, with Indonesia’s 10-year bond yield up 4.6 bps at 7.288 percent, while the Singaporean yield pushing 4.7 bps higher to 3.457 percent. – Ruelle Albert Castro, Reuters
