Connect with us

Hi, what are you looking for?

News

Shares drop on worries over peso, BSP decision

STOCKS declined on Tuesday as the peso weakened further versus the dollar and ahead of the Bangko Sentral ng Pilipinas (BSP) policy meeting where it is expected to raise borrowing costs again.

The benchmark Philippine Stock Exchange index (PSEi) shed 48.75 points or 0.77% to close at 6,285.19 on Tuesday, while the broader all shares index retreated by 19.11 points or 0.56% to 3,368.67.

First Metro Investment Corp. Head of Research Cristina S. Ulang said the peso’s continued decline against the dollar and the BSP’s upcoming review spooked investors.

“The local market closed lower this Tuesday as investors continued to trade cautiously amid the uncertainties over the Bangko Sentral ng Pilipinas’ upcoming policy decision this week. Sentiment was also dampened by the further weakening of the peso below the P54-per-dollar mark,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

Mr. Tantiangco said value turnover on Tuesday remained below the year-to-date average of P6.78 billion, “implying weak trading as many investors stayed out of the market.”

The peso sank further on Tuesday, closing at P54.265 against the dollar, 20 centavos weaker than its P54.065 finish on Monday.

This was the local unit’s worst close in more than three years or since its ended at P54.32 against the greenback on Oct. 4, 2018.

The BSP Monetary Board will meet to review policy settings on Thursday, June 23.

Outgoing BSP Governor Benjamin E. Diokno and his successor Monetary Board member Felipe M. Medalla on Monday affirmed their stance of a gradual tightening, with both signaling a 25-basis-point (bp) hike this week despite market expectations of a 50-bp increase.

A BusinessWorld poll last week showed nine analysts expect the BSP to raise rates by 25 bps, while six see an increase worth 50 bps.

The BSP began its tightening cycle with a 25-bp hike on May 19 to help stem rising prices as headline inflation already reached 5.4% in May, higher than its 4.6% forecast and 2-4% target for the year. Year to date, inflation has averaged 4.1%.

Majority of sectoral indices ended with losses except for industrials, which gained by 49.15 points or 0.55% to close at 8,839.11, and mining and oil, which rose by 22.76 points or 0.19% to 11,493.39.

Meanwhile, services fell by 19.01 points or 1.12% to 1,677.10; holding firms declined by 63.67 points or 1.09% to 5,777.42; property went down by 29.20 points or 0.99% to 2,904.76; and financials lost 7.70 points or 0.49% to end at 1,545.83.

Decliners bested advancers, 94 versus 87, while 53 names ended unchanged.

Value turnover went up to P3.97 billion on Tuesday with 885.42 million shares changing hands from the P3.57 billion with 764.92 million issues seen on Monday.

Net foreign selling climbed to P401.59 million from the P215.28 million recorded the previous trading day. — L.M.J.C. Jocson

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.