Share prices ended lower yesterday on profit taking while the peso closed up as investors digested news about the timing of the rate cut by the US Fed.
The Philippine Stock Exchange index was down 22.28 points to 6,667.09, a 0.33 percent drop.
The broader All Shares index was down 8.29 points or 0.23 percent to 3,585.93.
Losers edged gainers 98 to 79 with 55 stocks unchanged. Trading turnover reached P5.41 billion.
The peso closed at 58.385 to the dollar, up from 58.48 on Monday.
The currency opened at 58.455 and hit a high of 58.385 and a low of 58.52. Trading turnover reached $1.42 billion.
Asian emerging market currencies were subdued on Tuesday as the dollar steadied.
The dollar regrouped after comments by Federal Reserve Chair Jerome Powell bolstered September rate cut bets, though it remained around five-week lows.
Markets were also assessing the ramifications of a Donald Trump presidency as worries intensify that his hawkish trade policy, loose fiscal plans, and potential tax incentives could fan inflation and alter the US monetary policy easing path.
Risk-sensitive emerging market currencies have been pressured by a stronger dollar riding on the high interest rate wave, pushing developing countries to raise their borrowing costs to prevent capital outflows which in turn impacts economic growth.
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said the market dropped due to last-minute profit-taking after a three-day consecutive climb.
“This correction may imply that investors are not yet prepared to see the bourse above the 6,700 resistance level,” Plopenio said.
Most actively traded Ayala Land Inc. was up P1 to P31.70. BDO Unibank Inc. was down P3.90 to P139.80. SM Investments Corp. was steady at P900. SM Prime Holdings Inc. was up P0.40 to P30. International Container Terminal Services Inc. was down P1.20 to P362. Jollibee Foods Corp. was steady at P230. PLDT Inc. was down P50 to P1,499. Ayala Corp. was down P2 to P593. Metropolitan Bank and Trust Co. was down P0.55 to P67.50. Bank of the Philippine Islands was down P0.70 to P121.30.
