PSEi drops 0.88% on weak peso


Philippine share prices fell on Thursday as the market remained in a consolidation phase while investors worried over a weakening peso against the greenback.

The bellwether PSEi dropped 0.88 percent or 69.12 points to close at 7,788.06. The wider All Shares dipped 0.74 percent or 34.55 points to finish at 4,662.65.

Summit Securities Inc. President Harry Liu said investors were just waiting for any market-moving catalyst.
“Basically, it [trading]was a continuation of the last few weeks. The market has been hovering on the lower line. And then there was a short-term technical break on the index. That’s why it created a bit of a downshift because of that technical break,” Liu noted.

“But what is the reason? I think basically the peso-dollar—the peso depreciated a bit. So … maybe this has caused a bit of concern because the region was all up, only the Philippine market went down,” he added.

The Philippine peso depreciated to P50.53:$1 on Wednesday, touching a near 11-year low since it settled at P50.54:$1 on September 11, 2006.

All sectoral indices were in the red led by Services (-2.11 percent), Property (-1.88 percent), Mining and Oil (-0.57 percent), Financials (-0.41 percent), Holding Firms (-0.23 percent), and Industrials (-0.21 percent).

Among the most actively traded shares, Ayala Land dropped 2.26 percent, Pilipinas Shell Petroleum Corp. fell 2.17 percent, and Eagle Cement Corp. declined by 1.84 percent.

More than 2 billion shares, valued at P7.7 billion, were traded. Losers outnumbered gainers, 135 to 78, with 40 issues unchanged.


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