The Philippine Stock Exchange index (PSEi) was down 116.11 points to 6,836.91, a 1.66 percent drop.
The broader all shares index was down 52.06 points to 3,660.33, a 1.4 percent drop.
Losers edged gainers 138 to 49 with 43 stocks unchanged. Trading turnover reached P8.78 billion.
The peso closed at 52.12 to the dollar, up from Tuesday’s 52.25.
The currency opened at 52.35 and hit a high of 52.10 and a low of 52.375. Trading turnover reached $1.65 billion.
Michael Ricafort, chief economist at Rizal Commercial and Banking Corp. (RCBC), said the peso appreciated for the second straight day, its strongest in nearly two weeks, after it was reported the government posted a narrower budget deficit in the first quarter compared to a year ago.
Most Asian currencies weakened against a stronger dollar on Wednesday as expectations that the US Federal Reserve will hike interest rates next week and fears of a sharp slowdown in China kept investors looking for safer bets, Reuters reported.
Most currencies in Southeast Asia were in the red.
Bucking the trend, the Philippine peso firmed 0.2 percent against the dollar.
The Bangko Sentral ng Pilipinas is expected to consider a rate hike at its policy meeting in June to keep inflation under control, its governor said in a television interview on Tuesday.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market’s drop was in the backdrop of the same stories that dragged regional currencies – global economic slowdown concerns brought by surging COVID19 cases in China, a high inflationary environment, and a statement from a top Russian official that the threat of nuclear war is real.
Most actively traded SM Investments Corp. was down P9 to P851. Ayala Land Inc. was down P1.20 to P34. Ayala Corp. was down P26 to P732. BDO Unibank Inc. was down P2.60 to P128.40. SM Prime Holdings Inc. was down P0.50 to P36. Areit Inc. was down P2.80 to P39.90. International Container Terminal Services Inc. was down P4.40 to P29.70.
Converge ICT Solutions Inc. was up P0.30 to P29.70. Universal Robina Corp. was down P2.10 to P105. Solar Power Nueva Ecija Corp. was down P0.14 to P1.56.
