Stocks, peso plunge amid external headwinds

MANILA, Philippines — The stock market plunged to its lowest level this year as the peso fell to nearly 20-month low against the dollar.

The benchmark Philippine Stock Exchange index (PSEi) lost for the eighth consecutive session, plummeting by 2.93 percent or 186.08 points to end at 6,158.48.

This was the PSEi’s lowest level in over seven months or since hitting 6,110.88 in Nov. 15, 2023.

Also taking a huge blow was the broader All Shares index, which fell by 1.89 percent or 65.11 points, settling at 3,375.20.

“Philippine shares had one of the biggest drops in several months as investors remained wary of the regional run-up especially in the US. Yesterday, the US had a mixed session as the S&P hit 5,500 intraday for the first time in trading history,” Luis Limlingan of Regina Capital said.

Claire Alviar of Philstocks Financial said the market’s finish yesterday, its lowest this year, was due to strong net foreign selling, recording a net outflow of P1.34 billion.

Net market value turnover stood at P7.55 billion.

It was a bloodbath across sectors, with mining and oil as well as services posting the biggest drop at 3.88 percent and 3.78 percent, respectively.

Decliners pummeled advancers, 108 to 74, while 52 issues were unchanged.

“Negative sentiment from our regional peers also affected the market’s performance after Japan’s May core inflation data came in slightly cooler than expected, jeopardizing the country’s plans to raise interest rates,” Alviar said.

“Additionally, the weakness of the peso against the dollar continued to weigh on sentiment,” she said.

The peso continued its losing streak versus the greenback yesterday, depreciating by two centavos to close at its weakest level in nearly 20 months, data from the Bankers Association of the Philippines showed.