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THE peso and local stocks fell on Monday on continued investor
concerns over the US’ economic woes.
Even though the dollar dropped to a record vis-à-vis
the Japanese yen, the peso declined due to risk aversion, traders
said.
At the Philippines Dealing System, the local
currency skidded to 40.75 against the greenback, significantly than
Friday’s 40.45 finish. Trading volume rose to $615.12 million from
$597.4 million previously.
“Correction day due to risk aversion in the
US,” Marcelo Ayes, Rizal Commercial Bank Corp. (RCBC)
vice-president said.
Ayes said last week’s peaceful anti-government
rally in Makati however had no impact on trading.
“It was a non-event because nothing will come
from it. The elements weren’t there, like businessmen and
military,” he added.
He said the peso is seen to trade between 40.40
and 41 this week.
At the Philippine Stock Exchange, share prices
closed 1.6 percent lower Monday in line with other Asian markets
rattled by heavy losses on Wall Street last Friday, dealers said.
The composite index shed 50 points to 3,079.99.
It moved between 3,063.17 and 3,129.99. A total of 788.7 million
shares worth P2.6 billion changed hands.
Decliners outpaced gainers 67 to 29, while 42
stocks ended flat.
The broader all-share index shed 24.91 points or
1.3 percent at 1,896.25.
The benchmark composite index was in negative
territory throughout the session as investors also fretted about
soaring oil prices and domestic political uncertainty.
“The market’s inability to decouple from
markets abroad is evident today. The bad news on Wall Street created
jitters,” said Jose Vistan, research director at AB Capital
Securities.
On Friday the Dow Jones Industrial Average
plunged 315.79 points, or 2.5 percent to 12,266.39, amid
disappointing quarterly results from blue chips.
Oil prices meanwhile stayed above $101 a barrel
in Asian trading Monday ahead of an OPEC meeting in which the cartel
is expected to maintain current output levels.
Political uncertainty over mounting calls for
President Arroyo to step down over alleged corruption was also
weighing sentiment, analysts said.
Philippine Long Distance Telephone Co. (PLDT),
the country’s biggest company by market value, tumbled P100 to
P2,800.
Rival Globe Telecom Inc, fell P50 to P1,430.
Conglomerate Ayala Corp. shed P10 at P425.
Philippine food and beverage conglomerate San
Miguel Corp.’s A shares, limited to local investors, ended down P1
at P47. Its B shares, open to foreigners, dipped P1 at P49.50.
-- Chino S. Leyco and AFP
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