Share prices ended lower Tuesday on profit taking, in tandem with the peso.
Bangko Sentral ng Pilipinas Felipe Medalla yesterday confirmed interest rates would likely need to rise a further 25 or 50 basis points at next month’s policy meeting, but added that pressure to match Fed’s rate hikes was waning.
Before yesterday, the peso rose for a fifth consecutive session, adding as much as 0.2 percent to touch its highest level since June 2022, while the country recorded a better-than-expected trade deficit of $3.7 billion for November.
The peso closed at 54.87 to the dollar, down from 55.11 on Monday. The currency opened at 54.95, an intraday low, and hit a high of 54.80. Trading turnover reached $1.07 billion.
“The peso may enjoy some appreciation momentum in the near term on the improving balance of trade,” analysts at ING wrote, adding that a potential drop in exports later in the year could spell some renewed depreciation pressure on the currency.
Other regional currencies were mixed even as the US dollar hovered near a seven-month low.
The Philippine Stock Exchange index was down 33.55 points, a 0.49 percent drop to 6,756.69.
The broader All Shares index was down 9.74 points or 0.27 percent to 3,559.23.
Losers edged gainers 101 to 86 with 51 stocks unchanged. Trading turnover reached P20.64 billion.
Claire Alviar, analyst at Philstocks Financial Inc. said stocks investors were waiting for the release of the US inflation rate.
“Investors took profit near the 6,800 immediate resistance level,” she said.
Alviar said foreign selling hit P162.96 million.
Most actively traded SM Investments Corp. was up P3.50 to P903.50. BDO Unibank Inc. was down P1.50 to P110.90. PLDT Inc. was up P21 to P1,433. International Container Terminal Services Inc. was up P5 to P203. Ayala Corp. was down P0.25 to P37.25. Ayala Corp. was down P9 to P703. Bank of the Philippine Islands was down P1.50 to P104.50. Robinsons Land Corp. was down P0.08 to P15.
