Markets drop; fresh news awaited
THE peso and stock market started the week on a down note with investors said to be in wait-and-see mode ahead of the release of fresh economic data and the outcome of a monetary policy meeting.
The currency weakened by 10 centavos to P56.06 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 45.75 points, or 0.74 percent, to end Monday at 6,116.14.
The broader All Shares fell by 21.34 points, or 0.64 percent, to 3,295.52.
“[L]ocal investors were in a wait-and-see mode as there will be many key events for this week such as the [release of the October] US inflation rate, the Bangko Sentral ng Pilipinas (BSP) meeting [on Thursday], and the upcoming meeting between [US] President Joe Biden and [Chinese] President Xi Jinping,” Philstocks Financial Inc. research associate Claire Alviar said.
“Market participation was notably subdued, with a net market value turnover of only P1.29 billion. At least for this year, this was the lowest recorded net value turnover,” she added.
Upbeat corporate results “did little” to boost sentiment, Alviar said, with investors focusing instead on news about foreign direct investments and Moody’s downgrade of its ratings outlook for the United States.
Regina Capital Development Corp. Managing Director Luis Limlingan said “Philippine shares took a breather to start the week as the equities market awaits the latest results from both the Morgan Stanley Capital Index rebalancing, the BSP meeting, and several speaking engagements from Fed officials.”
“In particular, the key US economic data releases this week are the Consumer Price Index report, the retail sales report, and the Philly (Philadelphia) Fed manufacturing index,” he added.
“Back in the Philippines, besides the BSP’s policy-setting meeting on November 16, 2023, the September cash remittances will also be released on November 15, 2023, respectively.”
The peso opened at the day’s low of P55.94:$1 and traded as high as P56.13. Volume reached P1.184 billion, higher than the P951 million recorded in the previous session.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said a slight upward correction in the US dollar against major global currencies, along with softer local loan growth, had weighed on the peso.
At the stock market, all sectoral indices closed in the red. Mining and oil posted the biggest loss of 1.4 percent.
Volume was markedly thin at just over 285.3 million shares worth some P1.37 billion having changed hands.
Decliners won against advancers, 106 to 57, while 52 remained unchanged. TMT