Due to investor fears regarding the future course of interest rates, the stock market closed at its lowest point of the year on Tuesday, while the peso snapped a four-day losing streak.
In relation to the dollar, the currency increased by 3 centavos to P58.62. The improvement was ascribed to the ongoing growth in remittances from Filipino workers abroad by Michael Ricafort, chief economist at Rizal Commercial Banking Corp.
The peso moved from P58.6 to P58.73 and started trading at P58.68 to $1. Due to Monday’s closure of the Philippine financial markets for the Eid al-Adha holiday, trading volume decreased to P858 million from P1.078 billion on Friday.
In the meantime, the benchmark Philippine Stock Exchange index closed at 6,368.80, its lowest since December 12, 2023, when it fell by 14.90 points, or 0.23 percent. Additionally, the larger All Shares index dropped to 3,440.54, or 0.21 percent, or 7.21 points.
According to Mikhael Plopenio, research and engagement officer at Philstocks Financial Inc., investor anxiety on the timing of rate cuts by the Bangko Sentral ng Pilipinas (BSP) and the Federal Reserve (Fed) caused the local market to decline.
He said that the situation was made worse by net outflows totaling P262.54 million. “Investors continued to stay on the sidelines amid a lack of positive catalysts, resulting in a tepid net market value turnover of P2.85 billion, lower than the year-to-date average of P5.03 billion,” Plopenio said.
According to Luis Limlingan, Managing Director of Regina Capital Development Corp., speculation that the BSP may reduce its rate decrease this year as a result of the US Federal Reserve’s activities caused the local exchange to commence the abbreviated trading week lower than usual.
The majority of sectors reported gains, with the exceptions being the financials (-1.97 percent) and services (-0.42 percent). With an increase of 0.84 percent, industrials led the advances.
51 stocks stayed the same, while losers outweighed winners, 96 to 86.
