BUSINESS
PSEi falls 0.73 percent as peso weakens
The market retreated, falling 41.64 points to 5,701.54 after two consecutive sessions of gains, with investors remaining cautious amid growing expectations that the Bangko Sentral ng Pilipinas could raise its benchmark rate in its 22 October policy meeting.
The Philippine Stock Exchange Index (PSEi) fell 41.64 points, or 0.73 percent, to 5,701.54 on Tuesday, while the peso weakened 4 centavos, or 0.06 percent, to P62.80 per US dollar from Monday’s P62.76 close.
Concerns over Phl’s growth and inflation outlook
Concerns over the Philippines’ growth and inflation outlook, elevated bond yields and expectations of another interest-rate hike weighed on local assets.
The market retreated after two consecutive sessions of gains, with investors remaining cautious amid growing expectations that the Bangko Sentral ng Pilipinas (BSP) could raise its benchmark rate at its 22 October policy meeting. September inflation accelerated to 7.2 percent from 6.1 percent in August, with BSP Governor Eli Remolona Jr. citing the approaching severe El Niño season as a key consideration in the central bank’s upcoming policy decisions.
All sectors ended lower, with Services and Conglomerates recording the steepest declines at 0.85 percent each. Turnover reached P3.98 billion, while foreign investors were net sellers, recording P468.75 million in outflows and reflecting continued caution among market participants.
PLDT Inc. was the day’s top index gainer, climbing 3.91 percent to P1,195. ACEN Corp. was the biggest laggard, falling 4.48 percent to P2.56.
The peso weakened despite a softer dollar in regional trading. It opened at P62.75 and traded between P62.70 and P62.869 before closing at P62.80. The Bankers Association of the Philippines (BAP) morning weighted average was P62.837, while the afternoon weighted average eased to P62.815, indicating a modest recovery in the peso during afternoon trading.
The full-day BAP weighted average stood at P62.826, up from P62.739 on Monday, while the foreign exchange settlement rate rose to P62.837 from P62.718. Total spot-market volume eased to $1.02192 billion from $1.0559 billion, with morning volume at $485.7 million and afternoon volume at $536.22 million.
The peso’s decline despite easing global oil prices and Treasury yields underscored the influence of domestic concerns, particularly the inflation outlook and expectations of further BSP tightening.