Peso drops to P58.86:$1; stock market up anew

Peso drops to P58.86:$1; stock market up anew

THE peso fell to its lowest in just over 20 months on Wednesday, but the stock market rose for a third straight day ahead of today's Bangko Sentral ng Pilipinas policy meeting.

The currency weakened by 9 centavos to P58.86 to the dollar, short of the P58.87:$1 close posted on Oct. 24, 2022.

It opened trading at P58.82:$1 and ranged from P58.77 to P58.88. Volume hit P720 million, slightly lower than the P814 million recorded in the previous session.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that Wednesday's drop came as the dollar gained against major global currencies to a near two-month high.

The benchmark Philippine Stock Exchange index, meanwhile, climbed back to the 6,300 level, adding 14.06 points, or 0.22 percent, to end the day at 6,313.11.

The broader All Shares also rose, by 9.49 points or 0.28 percent, to 3,450.58.

Mikhail Plopenio, research and engagement officer at Philstocks Financial Inc., said "the market moved sideways for Wednesday's session, wherein bargain hunting prevailed leading to a positive close."

"[F]oreigners remained as net buyers with net inflows amounting to P60.72 million," he added.

"Many are still cautious ahead of the Bangko Sentral ng Pilipinas' policy meeting this Thursday," Plopenio continued.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said "local shares closed slightly above the 6,300 level as bargain hunting continued before the semester end."

"This patterned the mixed performance of US equities, which were influenced by a 7-percent jump in Nvidia," he added.

"The artificial intelligence giant's market cap gives it significant sway over the S&P 500, and its 154-percent surge in 2024 has raised concerns about the narrowness of this year's rally," he continued.

Net market value turnover was P4.78 billion, lower than the year-to-date average of P5.03 billion.

Sector results were mostly higher with services having the biggest gain of 0.86 percent. Holding firms, and mining and oil were the day's losers, dropping by 0.64 percent and 0.12 percent, respectively.

Decliners edged out gainers, 90 to 85, while 69 were unchanged.