Philippine Stocks Dip, Peso Strengthens Amid Mixed Global Cues

MANILA — The Philippine stock market closed lower on Wednesday, while the local currency, the peso, saw an appreciation against the dollar.

According to Philippines News Agency, head of sales at Regina Capital Development Corp., the Philippine Stock Exchange index (PSEi) dropped 67.31 points to settle at 6,489.35, slipping below the 6,500 mark influenced by mixed outcomes in Wall Street’s recent performance. “Philippine shares took a breather, slipping below the 6,500 level following Wall Street’s mixed results, with the Nasdaq Composite and S and P 500 reaching new records,” Limlingan explained. He noted that while the S&P 500 edged up by 0.07 percent and the Nasdaq grew by 0.14 percent, the Dow experienced a slight decline of 0.13 percent.

The broader All Shares index also decreased by 28.20 points. The decline in stocks was accompanied by cautionary words from Federal Reserve Chair Jerome Powell about the risks of prolonged high interest rates on economic growth, which sparked a stronger call for a rate cut on Wall Street. In the Philippines, sentiments were similarly cautious as investors digested remarks from Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr., who pointed out the economic risks of delaying interest rate cuts.

Sector-wise, all segments closed in the red, with the Industrial sector experiencing the largest decline, falling by 1.64 percent. Market breadth was negative, with 111 decliners leading 62 advancers.

Conversely, the peso ended the day stronger, closing at 58.32 to the dollar, improving from Tuesday’s close of 58.44. Throughout the trading day, the peso moved between 58.3 and 58.5, averaging at 58.376.

Trading volume on the exchange slightly decreased, with the day’s transactions totaling approximately USD1.16 billion, down from USD1.18 billion the previous day.