Stocks dip as peso continues to depreciate

The Philippine stock market experienced a decline on Wednesday after reaching strong gains earlier in the week. The Philippine Stock Exchange index fell by 0.67 percent, or 40.66 points, to 6,053.23 at the close of trading. The broader All Shares index also dropped by 0.31 percent, or 10.58 points, settling at 3,352.61. Luis Limlingan of Regina Capital attributed the market correction to the ongoing weakening of the local currency.

He noted that the peso's depreciation negatively impacted investor sentiment, causing a cautious approach among investors. Global market weakness further compounded the cautious sentiment. All sectors of the market were in the red, except for the industrial index, which saw a 0.38 percent increase. The services sector was the hardest hit, with a decline of 1.46 percent.

The overall trading volume decreased to P5.69 billion from the previous day's P10.47 billion. The number of declining stocks outnumbered advancing stocks, with 101 falling and 79 rising. Only 65 stocks remained unchanged. The peso continued its record-breaking decline for the fourth consecutive day, falling by 16.5 centavos to 62.565 at the close of trading.

This was lower than Tuesday's record-low finish of 62.40. The Bankers Association of the Philippines reported that the peso opened at 62.40, the highest level for the day, but weakened to a record low of 62.69 before recovering slightly. UnionBank chief economist Ruben Carlo Asuncion attributed the peso's continued weakness to factors such as higher global interest rates, a stronger dollar, high oil prices, and ongoing geopolitical uncertainty.