Shares sink to 6,200 range as peso revisits low

Philippine shares closed lower for a second straight day on Wednesday, dragging the main index back to the 6,200 range, as players booked gains and became increasingly cautious after the peso returned to its record low.

The Philippine Stock Exchange index (PSEi) sank by 1.04% or 65.95 points to close at 6,267.85, while the broader all shares index fell by 0.53% or 18.23 points to end at 3,421.35.

The PSEi opened Wednesday’s session at 6,334.88, a tad higher than Tuesday’s close of 6,333.80. This was also its peak for the day. Meanwhile, its intraday low was at 6,259.31.

“The local bourse ended lower as investors turned cautious amid continued peso depreciation, prompting profit taking across the market. The selling pressure pushed the benchmark index below the 6,300 level as sentiment remained subdued. Attention is likely to remain on currency movements and broader market conditions in the near term,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said via Viber.

On Wednesday, the peso slipped by half a centavo to close at its record low of PHP 61.75 against the dollar, data from the Bankers Association of the Philippines showed. The currency last finished at this level on May 18 and 19.

This marked the third straight day of decline for the peso, which has been under fresh pressure as renewed hostilities in the Middle East pushed up oil prices, reviving inflation concerns.

“The local market extended its decline on the back of heavy profit taking on index heavyweight International Container Terminal Services, Inc. (ICTSI). The rise in global oil prices and the decline of the peso to record lows amid the ongoing US-Iran war also weighed on market sentiment,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

ICTSI was the day’s worst index performer as its shares plunged by PHP 39 or 3.9% to close at PHP 960 each.

On the other hand, Semirara Mining and Power Corp. was the index leader, climbing 3.11% to PHP 21.55 apiece.

Sectoral indices ended mixed on Wednesday. Mining and oil rose by 1.29% or 203.58 points to 15,912.78; industrials increased by 0.4% or 33.93 points to 8,471.52; and property went up by 0.24% or 4.63 points to 1,922.45.

Meanwhile, services slumped by 3.01% or 104.92 points to 3,376.44; holding firms dropped by 0.27% or 12.34 points to 4,403.32; and financials edged down by 0.07% or 1.47 points to 1,911.4.

Decliners beat advancers, 105 to 89, while 48 names were unchanged.

Value turnover dropped to PHP 6.49 billion on Wednesday with 711.22 million shares traded from the PHP 7.94 billion with 702.8 million issues that changed hands on Tuesday.

Net foreign selling rose to PHP 655 million from PHP 312.45 million in the previous session. — Alexandria Grace C. Magno