MANILA – The Philippine Stock Exchange index (PSEi) fell below the 6,400-level as investors waited for the release of May inflation data on Wednesday.
The local bourse declined by 1.3 percent to 6,386.42 on Tuesday’s trading, while All Shares also declined by 0.92 percent to 3,439.04 level.
All counters closed in the negative territory, with the biggest shedding coming from Holding Firms, followed by Mining and Oil, Property, Industrial, Services, and Financials.
“This decline reflects negative investor sentiment due to concerns about rising inflation and a weakening peso,” Philstock Financials, Inc. research associate Claire Alviar said.
“Adding to the market's downward pressure was the decline of SM Investments Corporation, a heavyweight in the index. Strong net foreign selling of SM shares, amounting to PHP754.35 million, its highest this year, contributed to its decline,” she said.
Alviar added foreigners were also net sellers on this day’s trading recording PHP1.31 billion.
Decliners outnumbered advancers at 128 to 80, leaving 32 firms unchanged.
Meanwhile, the Philippine peso closed flat on Tuesday, finishing at 58.71 to a US dollar.
It started the day weak at 58.62 from last day’s opening at 58.47 to a dollar, before trading between 58.58 and 58.75.
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr., on the sidelines of a forum in Mandaluyong, was asked by reporters if hitting the 59-level would be of much concern to the central bank, and he replied, “We don’t worry too much about the level itself, we worry more about where it’s going.”
Remolona added the BSP will continue to guide the market “by occasionally expressing our own view” on where peso should go.
He said the central bank remains steadfast in intervening when it finds some dysfunction in the market.
He said “the story is a strong dollar, not a weak peso,” as the US dollar appreciated against most currencies, not only in the region but even against other major currencies in the world.
Remolona said that since the start of the year, the peso has depreciated by 5.4 percent against the dollar. (PNA)
