PSEi Declines on Monetary Outlook, Peso Strengthens to 57-Level

MANILA: The Philippine Stock Exchange index (PSEi) fell on Tuesday while the peso strengthened, returning to 57-level. The local bourse ended the day declining by 1.07 percent to 6,501.34, with All Shares also down by 0.72 percent to 3,484.74.

According to Philippines News Agency, Inc. research and engagement officer Mikhail Plopenio, investors are reacting to recent cues from the central bank’s monetary policy outlook. “Primarily, investors digested the results of the BSP’s latest survey which showed that the majority of respondent analysts project policy rates to remain unchanged in Q3 2024. Also digested was BSP Senior Assistant Governor Iluminada Sicat’s remarks, saying that upside risks to inflation remain, causing the BSP to remain restrictive with its policy,” Plopenio said.

Only two counters closed with gains: Mining and Oil, and Financials, which shares increased by 1.49 and 1 percent, respectively. The Industrial counter shed the most shares, down by 142.04 points, followed by Holding Firms, Property, and Services. Losers outnumbered winners at 102 to 93, with shares of 35 firms left unchanged.

Meanwhile, the Philippine peso strengthened after closing back to 57-level at 57.97 to a US dollar from the previous day’s finish of 58.11. It opened strong at 58.07 from Monday’s kick-off at 58.18 to a dollar, trading between 57.90 to 58.07, with an average level for the day at 57.95 to the greenback. Volume of trade surged to USD1.24 billion from USD791.5 million the previous day.