Shares decline on weak peso, dearth of leads

Share prices closed lower on Wednesday, weighed down by a weaker peso and falling gold prices, with investors grappling with the absence of fresh catalysts.

The benchmark Philippine Stock Exchange index (PSEi) fell 1.03% or 62.66 points to close at 6,030.87, while the broader all-share index dropped 0.83% or 30.47 points to 3,627.38.

AP Securities, Inc. said in a market note that the equities fell back after four consecutive days of unsuccessful attempts to breach the 6,100 level.

“The market struggled to find new catalysts (while) the peso weakened. Moreover, the dip in gold spot prices also contributed to the negative sentiment in the market,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said via Viber.

The peso closed at PHP 58.41 to the dollar on Wednesday, weakening from Tuesday’s finish of PHP 58.225, the Bankers Association of the Philippines reported.

US stocks were mixed in Tuesday trading, with the Dow higher as solid earnings drew investors to industrial and capital goods sectors, Reuters reported.

“The S&P 500 finished flat, showing little movement by the close, while declines in growth and semiconductor stocks pulled the Nasdaq slightly lower,” Mr. Limlingan said.

Most sectoral indices closed lower Wednesday. Mining and oil were down 5.91% or 834.12 points at 13,278.49; financials dropped 1.62% or 33.2 points to 2,010.92; services fell 1.42% or 33.05 points to 2,291.24; property was down 1.14% or 25.68 points at 2,228.64; and industrials fell 0.95% or 85.22 points to 8,879.32.

Meanwhile, holding firms rose 0.06% or 3.16 points to 4,877.17.

Decliners outnumbered advancers, 150 to 57, while 48 issues were unchanged.

The value of trade was PHP 10.81 billion on Wednesday on a volume of 12.06 billion shares. Tuesday’s value and volume had been PHP 5.24 billion and 1.31 billion shares.

Net foreign selling was PHP 104.43 million, reversing the PHP 231.58 million in net buying Tuesday. — Alexandria Grace C. Magno