Share prices tanked Tuesday as risk aversion continued to hit the market.
The peso closed lower.
The Philippine Stock Exchange index was down 129.90 point to 6,810.11, a 1.87 percent drop.
The broader All Shares index was down 46.68 points or 1.21 percent to 3,820.34.
Losers edged gainers 134 to 61 with 63 stocks unchanged.
Trading turnover reached P5.59 billion.
The peso closed at 58.831 to the dollar, down from Monday’s P58.595.
The currency opened at 58.73, an intraday high, and hit a low of 58.845. Trading turnover reached $1.12 billion.
Asian currencies tumbled on Tuesday, as investors ditched risky assets worried about the potential fallout from a second term for Donald Trump as US president.
Prospects of looser regulation and equity-boosting tax cuts in the US during Trump’s presidency have also boosted the attractiveness of Wall Street assets and the greenback, putting pressure on Asian markets.
“I expect the US dollar to continue to do well as upside risks continue to dominate in US interest rates. These trends suggest emerging market rates and currencies will underperform,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.
Investors are now awaiting US consumer price data on Wednesday to gauge the outlook of US interest rates, with traders currently pricing in a roughly 65 percent chance of a cut in December, according to CME Group’s FedWatch Tool.
Philstocks Financial Inc. said the local bourse dropped for the fifth consecutive session, with “lingering headwinds including the weak peso and the impact of President-elect Donald Trump’s planned protectionist policies on the global economy continue to weight on sentiment.”
Most actively traded Ayala Land Inc. was down P1.05 to P30.55. International Container Terminal Services Inc. was down P9.80 to P380.20. BDO Unibank Inc. was down P1.90 to P147.10. SM Prime Holdings Inc. was down P0.80 to P27.10. Bank of the Philippine Islands was down P2.90 to P135.10. SM Investments Corp. was up P2 to P917. Aboitiz Equity Ventures Inc. was down P0.35 to P33.85. Ayala Corp. was down P27 to P658. PLDT Inc. was down P59 to P1,340. Universal Robina Corp. was down P5.20 to P90.75.
