Stocks down, peso pierces 59:$1

MANILA, Philippines — The local stock market took its cues from US equities, extending its decline to seven consecutive sessions as it plunged back to the 6,300 level.

The benchmark Philippine Stock Exchange index (PSEi) shed 1.14 percent or 73.48 points to finish at 6,395.60.

Also closing in the loss column was the broader All Shares index, which fell by 0.76 percent or 28.25 points to 3,671.75.

“The Philippine market tracked the global slump in equities after the US Federal Reserve signaled a slower trajectory for future rate cuts,” AP Securities research head Alfred Benjamin Garcia said.

“This will likely translate to slower rate cuts from the Bangko Sentral ng Pilipinas (BSP) as well, if only to defend the peso from depreciating further,” he said.

Luis Limlingan of Regina Capital said that US equities recorded lows on Wednesday as the Federal Reserve hinted at a slower pace of cuts by 2025.

All local counters were in the red, four of which plummeted by more than one percent each. Taking the biggest hit was the mining and oil index, which dropped by 2.37 percent.

Market breadth remained negative as decliners crushed advancers, 126 to 72, while 41 issues were unchanged.

Value turnover improved slightly to P5.86 billion from the previous day’s P4.35 billion.

BPI was yesterday’s top traded company, losing 3.17 percent to P122 per share, followed by Ayala Land which declined by 4.05 percent to P24.90.

Meanwhile, the peso depreciated for the fifth straight trading day to close at 59 to $1 yesterday, matching the all-time low last seen in Nov. 26 as the BSP slashed policy rates anew.

Based on data from the Bankers Association of the Philippines, the local currency slid by a centavo to close at its intraday low of 59 to $1 from its 58.99 to $1 finish on Wednesday.