Philippine stocks slide as peso hits record low
PHILIPPINE SHARES fell for a third straight session on Monday as investors stayed cautious, with the peso sinking to a record low of P59.87 against the dollar amid surging oil prices and the Middle East war.
The Philippine Stock Exchange index (PSEi) dropped 0.86% or 52.39 points to close at 6,006.55, while the broader all-share index fell 1.19% or 40.42 points to 3,341.69.
“The PSEi ended barely above the 6,000 mark, extending last week’s sell-off amid cautious sentiment, driven by elevated oil prices and the ongoing Middle East tensions,” Luis A. Limlingan, head of sales at Regina Capital Development Corp., said via Viber.
“The market remained pessimistic even after the central bank stepped in to support the peso, keeping traders defensive and wary of further downside if key support levels give way in the near term,” he added.
Investors are closely watching local economic implications of the Middle East war, including rising fuel and energy costs and a weaker peso, which could stoke inflation, Japhet Louis O. Tantiangco, research manager at Philstocks Financial, Inc., said in a Viber message.
Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. said the central bank intervened in the foreign exchange market to prevent the peso from breaching P60 a dollar.
Most sectoral indexes ended lower. Mining and oil dropped 4.58% to 17,140.16; industrials fell 2.57% to 8,656.64; property declined 1.29% to 1,998.51; holding firms slid 1.02% to 4,629.17; and financials eased 0.64% to 1,922.95. On the other hand, services gained 0.16% to 2,722.37.
Losers beat winners, 153 to 53, with 53 stocks unchanged. International Container Terminal Services, Inc. led gainers with a 1.46% rise, followed by DMCI Holdings, Inc. at 0.41%. DigiPlus Interactive Corp. was the worst performer, plunging 5.66% to P18.
Value turnover fell to P9.53 billion, with 3.29 billion shares traded, down from P13.91 billion and 887.43 million shares last Friday.
Net foreign selling eased to P400.15 million from P3.66 billion in the previous session, suggesting some cautious inflows amid the broader market decline.
The combination of record peso depreciation and higher global energy costs continues to weigh on investor sentiment, leaving market participants defensive and selective in their trades. — Alexandria Grace C. Magno
