Peso gains against dollar; PH stocks fall on selling pressure

The Philippine peso strengthened against the US dollar Wednesday, but the Philippine Stock Exchange index (PSEi) weakened due to selling pressure as investors took note of the latest credit rater’s outlook on the domestic economy.

The local currency gained against the greenback after closing the day at 61.65 from 61.73 on Tuesday.

It opened the day stronger at 61.63, from day-ago’s 61.77, and traded between 61.67 and 61.52. The average for the day stood at 61.58.

Volume reached USD1.90 billion, up from day-ago’s USD1.57 billion.

On the other hand, the local bourse’s main index shed for the second consecutive day, down by 0.86 percent to 6,137.23 points, and the broader All Shares by 0.52 percent to 3,394.57 points.

Half of the sectoral gauges followed, led by Services after it fell 2.47 percent. Property slipped by 0.45 percent and Holding Firms by 0.21 percent.

Financials, Mining and Oil, and Industrial, meanwhile, rose by 0.30 percent, 0.14 percent, and 0.2 percent, respectively.

Volume reached 862.4 million shares, amounting to PHP5.35 billion.

Luis Limlingan, Regina Capital Development Corporation head of sales, said selling pressure ruled equities trading during the day.

“Market sentiment turned cautious following Moody’s forecast that Philippine GDP (gross domestic product) growth will remain below 6 percent over the medium term. Investors stayed on the sidelines as concerns over the country’s growth outlook continued to weigh on risk appetite,” he said.

-Joann Villanueva/Philippine News Agency