Peso touches 57-level, stocks down on lack of leads - TrueID

Peso touches 57-level, stocks down on lack of leads

Philippine News AgencySeptember 5, 2022

RATE HIKE WORRIES. Anticipations for more Federal Reserve rate hikes continue to weaken both the Philippines' main stocks index and the peso on Monday (Sept. 5, 2022). The local currency even touched the 57-level mid-trade and finished the day to another record-low against the greenback. (PNA graphics)

MANILA – The local stock barometer declined Monday after a good finish last week as trading for the week was greeted by United States Labor Day, while the peso touched the 57-level against the US dollar.

The Philippine Stock Exchange index (PSEi) declined by 0.25 percent, or 16.61 points, to 6,676.04 points.

All Shares followed with a drop of 0.19 percent, or 6.82 points, to 3,541.71 points.

Most of the sectoral gauges also went down during the day, led by Property after it slipped by 0.73 percent.

It was trailed by the Mining and Oil index, 0.72 percent; Holding Firms, 0.58 percent; and Industrial, 0.28 percent.

On the other hand, Financials rose by 1.11 percent and Services by 0.10 percent.

Volume was thin at 822.65 million shares amounting to PHP4.2 billion.

Decliners led advancers at 101 to 75, while 54 shares were unchanged.

Luis Limlingan, Regina Capital Development Corporation (RCDC) head of sales, attributed the negative close of the main equities index during the day to lack of leads from Wall Street due to the Labor Day holiday in the US.

“There was also some overhang as the US sold down on Friday, with fears that the Fed (Federal Reserve) would stay aggressive in hiking rates to combat inflation,” he said.

Limlingan said oil futures reversed their course and rose ahead of the OPEC+ meeting on Sept. 5.

He said Brent crude oil futures increased by USD0.66 to USD93.02 per barrel and the West Texas Intermediate (WTI) by USD0.26 to USD86.87 per barrel.

Meanwhile, the peso further weakened to a new record low against the US dollar after it finished the day at 56.999, surpassing the 56.77 finish last Friday.

Prior to its close last Friday, the local unit’s previous weakest level was 56.45 registered on Sept. 27, 2004, according to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort.

He attributed the peso’s latest performance to anticipation for additional hikes in the Fed’s key rates to address US’ elevated inflation rate.

The local currency opened the day at 56.85, a big drop from its 56.5 start in the previous session.

It traded between 56.8 and 57.00, bringing the day’s average to 56.941.

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