Investors yesterday went on a selling spree on risks that the peso would continue to depreciate, in effect pulling the local stock market to below the 6,000 mark at the close of the week.
The benchmark Philippine Stock Exchange index (PSEi) yesterday fell by 1.09 percent, or 65.94 points, to close at 5,988.02, as investors sold off their shares factoring in currency weakness.
The broader All Shares index also declined by 0.81 percent or 29.47 points to close at 3,608.11.
Regina Capital Development Corp. head of sales Luis Limlingan said investors chose to opt out of the PSEi with the peso hitting nine-month lows.
The peso closed at 58.625 to $1 yesterday, which was its lowest since Feb. 3, on pressures from Washington’s protectionist policies.
‘Sellers took control of the session today. The sustained depreciation of the peso against the dollar continues to weigh on the market’s sentiment,’ Limlingan said.
Moreover, Limlingan believes investors are pricing in the growing consensus that the Philippine economy would grow at a slower pace because of corruption scandals and trade tensions.
Recently, BMI Country Risk and Industry Research has cut its growth forecast for the Philippines to 5.2 percent from 6.2 percent on internal and external risks.
The PSEi saw P26.28 billion worth of shares change hands yesterday, with losers outnumbering the winners, 123 to 75, while 49 issues stayed the same.