PSEi tumbles anew, peso retests record low

MANILA, Philippines —  The local stock market saw sustained profit-taking activities from investors, while the peso matched its record low after closing at 61.75 against the dollar amid escalating tensions between the United States and Iran.

 The bellwether Philippine Stock Exchange index (PSEi) fell by 1.04 percent or 65.95 points to finish at 6,267.85.

The broader All Shares index likewise tumbled by 0.53 percent or 18.23 points, settling at 3,421.35.

First Metro Securities said the local bourse extended its decline on continued de-risking amid a second straight session of foreign outflows and a deterioration in global risk sentiment.

It said offshore investors turned net sellers, unloading P654.99 million while accounting for roughly half of total activity.

Total turnover value slipped to P6.49 billion from the previous day’s P7.94 billion.

RCBC chief economist Michael Ricafort cited as among the factors affecting the decline in the PSEi for the second straight trading day was the upcoming wage hike in Metro Manila that could lead to higher overall inflation due to higher prices of goods and services.

Ricafort said the decline of the peso also affected investor sentiment.

Ricafort, however, said yesterday’s decline is considered a healthy downward correction after gaining for four straight trading days.

Sectors were mixed, with mining and oil taking the biggest leap at 1.3 percent, while services suffered the largest drop at 3.01 percent.

Data from the Bankers Association of the Philippines showed the peso closed slightly weaker than Tuesday’s 61.745 finish. Wednesday’s close matched the peso’s record low of 61.75 per dollar, last recorded on May 19.

During the session, the peso opened at 61.73, which also marked its strongest level of the day, before weakening to 61.75, matching its record intraday low.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the peso remained under pressure after the greenback strengthened further as rising oil prices heightened concerns over inflation.