PSEi Records Consecutive Losses as Moody’s Revises US Credit Outlook

Manila – The Philippine Stock Exchange index (PSEi) recorded losses for two consecutive days, influenced by Moody’s downward revision of the United States’ credit rating outlook. The benchmark index closed on Tuesday with a decrease of 5.26 points, settling at 6,110.68, while the broader All Shares index also declined by 5.26 points to 3,286.28.

According to Philippines News Agency, Rizal Commercial Banking Corp. chief economist Michael Ricafort, except for the Property sector, all indices concluded in the red, with the Mining and Oil sector experiencing the most significant drop.

Ricafort attributed the market sentiment’s downturn to Moody’s Investors Service’s revision of the United States credit rating outlook from stable to negative. He noted, however, that despite the PSEi’s recent losses, its current level remains among the three-week highs since October 23. The total market value turnover for Tuesday stood at PHP2.49 billion.

The Philippine peso, meanwhile, closed flat against the US dollar, ending the day at PHP56.06. The currency opened weaker at PHP56.04, compared to the previous trading’s opening of PHP55.94. Throughout the day, the peso traded between a low of PHP56.02 and a high of PHP56.14, averaging PHP56.09 against the dollar. The trade volume increased to USD1.4 billion from USD1.18 billion. Ricafort forecasted that the peso exchange rate could fluctuate between PHP55.95 and PHP56.15 levels in the following trading session.