PSEi Declines Amid US Market Trends, Philippine Peso Strengthens

MANILA, Philippines — The Philippine Stock Exchange index (PSEi) experienced a decline, dropping to the 6,800 level on Monday, influenced by negative trends in the US markets. In contrast, the Philippine peso ended the day stronger against the US dollar.

According to Philippines News Agency, Assistant Research Manager at Philstocks Financial, Inc., the local bourse fell by 69.97 points or 1.01 percent to close at 6,872.24, mirroring the downturn in Asian markets and reacting to Wall Street's performance the previous Friday. Investors were also in a state of anticipation ahead of the release of US inflation data expected later in the week.

Sectoral counters all finished in the negative territory, with Property experiencing the largest decline at 2.70 percent. This was followed by the Industrial sector, down by 1.15 percent; Mining and Oil, which decreased by 1.06 percent; Services, dropping 0.84 percent; Holding Firms, with a slight decline of 0.21 percent; and Financials, which fell by 0.12 percent.

Alviar noted the impact of foreign investors on the market's performance, highlighting a net outflow of PHP277.68 million. Moreover, the market's net value turnover was notably weak, totaling only PHP3.46 billion, significantly lower than the year-to-date average of PHP4.71 billion. The day saw losers outnumbering gainers, with 125 stocks declining, 62 advancing, and 53 remaining unchanged.

On the currency front, the Philippine peso showed resilience, appreciating to 55.37 against the US dollar, an improvement from the previous week's close of 55.57. The peso opened at 55.59, stronger than its opening the day before at 55.82 per dollar. Throughout the day, the currency pair fluctuated between 55.37 and 55.65, with the day's average standing at 55.51 versus the greenback. Foreign exchange volume saw a decrease, moving from USD1.21 billion in the previous trading session to USD1.09 billion.

The market movements in Manila reflect broader trends in global finance, with local investors closely watching international indicators, particularly from the United States, for cues on future performance.