Peso sets another record low, stocks gain

The Philippine Stock Exchange Index (PSEi) rose 14.98 points, or 0.26 percent, to 5,797.90 on Monday, while the peso weakened 10.5 centavos, or 0.17 percent, to a record-low closing rate of P63.09 per US dollar from Friday’s P62.985. Easing global oil prices supported equities but failed to ease pressure on the currency.

The local market extended its recovery as investors continued bargain-hunting after recent declines, buoyed by lower global oil prices following US President Donald Trump’s waiver of new sanctions against Russia.

Light turnover

The index, however, failed to break above the 5,800 resistance level. Turnover remained light at P4.63 billion, reflecting continued caution over downside risks.

Conglomerates led sectoral gains, rising 1.08 percent, while services was the sole laggard among the sectors cited, slipping 0.42 percent. PLDT Inc. climbed 4 percent to P1,300, leading index constituents, while RL Commercial REIT Inc. fell 5.93 percent to P6.35, the biggest decliner.

Peso weakens

The peso weakened despite the pullback in oil prices, closing above the P63-per-dollar threshold. It opened at P62.98 and traded between P62.98 and P63.17 before settling at P63.09.

The Bankers Association of the Philippines’ morning weighted average was P63.112, improving to P63.071 in the afternoon, indicating some recovery during later trading. The full-day weighted average rose to P63.088 from P63.068 on Friday, while the foreign exchange settlement rate stood at P63.112.

Spot-market activity increased, with total volume reaching $1.77803 billion from $1.5984 billion in the previous session.

Morning volume was $710.93 million, while afternoon volume rose to $1.067095 billion. The higher afternoon volume coincided with a lower afternoon weighted-average rate than in the morning, suggesting the peso regained some ground during the session even as it closed weaker than Friday.

Monday’s close surpassed the previous record of P63.06 posted last Thursday. While the local currency eased to P62.985 last Friday, it posted a new intraday low of P63.23, a level it tested on Monday with an intraday high of P63.17.

The peso’s weakness also reflected broader pressure on emerging Asian currencies after stronger-than-expected US inflation boosted expectations that the Federal Reserve could keep rates high or raise them further.

The dollar had climbed to an 18-month high following the inflation report, while Philippine analysts also cited geopolitical risks and declining gross international reserves as additional concerns.