Share prices ended lower Monday on risk aversion as investors preferred to sell stocks after the US Fed signalled a hawkish stance to fight inflation in the US. The peso closed down.
The Philippine Stock Exchange index (PSEi) was down 62.23 points, a 0.92 percent drop to 6,690.27.
The broader All Shares index was down 28.95 points to 3,548.50, a 0.81 percent drop.
Losers edged gainers 124 to 58 with 51 stocks unchanged. Trading turnover reached P5.98 billion.
The peso closed at 56.225 to the dollar, down from 56.02 on Friday. It opened at 56.15 and hit a high of P56.1 and a low of P56.32.
Trading turnover reached $1.08 billion.
Most emerging Asian currencies firmed on Tuesday after a sharp drop in the last session, as the US dollar struggled below a two-decade peak touched on Monday due to a re-invigorated euro.
The dollar index pulled back as investors raised bets for a super-sized 75-basis-point interest rate increase by the European Central Bank while paring the odds for one by the US Federal Reserve.
“Market participants will be watching for any additional follow-up commentary from Fed officials regarding their rate-hike cycle,” said Nicholas Mapa, senior economist at ING.
“Investors will also be watching regional manufacturing indexes as well as US non-farm payrolls for direction,” Mapa said.
Claire Alviar, analyst at Philstocks Financial Inc., said investors reacted to Fed chair Jerome Powell’s hawkish speech in Jackson Hole.
“The hawkish stance of the Fed despite the easing of inflation brought negative sentiment as this may lead to a US recession. At home, the peso is weakening once again, trading at 56 levels. We may expect the peso to depreciate further if the Fed will continue to hike interest rates,” she said.
Most actively traded BDO Unibank Inc. was down P0.10 to P131.40. Ayala Land Inc. was down P0.40 to P28.90. Converge ICT Solutions Inc. was down P0.64 to P17.96.
International Container Terminal Services Inc. was down P2.50 to P184. Ayala Corp. was down P13 to P707. Monde Nissin Corp. was up P0.42 to P16.42. Bank of the Philippine Islands was down P2.55 to P94.40. AC Energy Corp. was down P0.31 to P7.73. SM Investments Corp. was down P3.50 to P875.50. AbaCore Capital Holdings Inc. was down P0.02 to P2.19.
