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THE peso on Tuesday hit its weakest against the dollar so far this
year, while the stock market continued its slide on persistent
worries over the global economic outlook.
At the Philippine Stock Exchange, share prices
closed 0.6 percent lower, with early gains wiped out by a late
session sell-off, dealers said.
They said although bargain-hunters initially
lifted the market, nervous investors quickly grabbed profits,
mindful of the deep trouble the US economy is in due to the
worsening credit crisis.
The composite index lost 16.26 points to close
at 2,777.42 after moving between 2,773.17 and 2,812.06.
The all-share index fell 12.45 points to
1,714.07.
There were 65 decliners and 31 advancers, while
54 were steady.
Volume amounted to 1.7 billion shares worth P1.7
billion.
“It’s been very tempting to buy but, given
the uncertainty and the long weekend ahead, investors prefer to stay
out and wait until the dust settles,” said Astro del Castillo of
First Grade Holdings Inc.
“There are too many unknowns, too much
uncertainty. We face many issues—a worsening credit crisis, a
weakening US economy, and rising prices of crude oil and other
commodities,” he said.
Philippine markets will be closed Thursday and
Friday for the Easter holidays. Trading will resume on Monday.
Philippine Long Distance Telephone Co. (PLDT)
fell P20 to P2,600.
Ayala Land Inc., the country’s largest
builder, rose 20 centavos to P9.90. Food and drinks giant San Miguel
Corp.’s A and B shares were both steady at P40.50.
At the Philippine Dealing System, the peso hit
41.75 to a dollar, its weakest since the start of the year.
By day’s end, however, the local currency
closed at 41.51 to the greenback, stronger than Monday’s 41.72
finish. Trading volume reached $452 million, down from the previous
session’s $794.225 million.
A trader said the peso retreated ahead of the
expected US Federal Reserve rate cut.
Metropolitan Bank and Trust Co. said the Bangko
Sentral ng Pilipinas (BSP) was intervening to calm market fears.
In a note, Metrobank said if the local currency
closed above 41.60, sentiment would shift toward a strong dollar as
carry trades are unwound and US equity markets fall.
“It would take a close below 41.6 for the peso
to see some relief,” the bank said.
As the remittance season is approaching,
Metrobank said this should provide a boost to the local currency in
the coming months.
“The coming long weekend may also see a
respite for the peso as bunched inflows may cap the dollar’s
strength. Expect the BSP to provide dollar liquidity as the peso
weakens,” Metrobank said.
-- AFP and Chino S. Leyco
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