The Philippine Stock Exchange index faced a setback on Tuesday, retracting by 0.74 percent or 49.12 points, closing at 6,633.66, following a promising start earlier in the week. The broader All Shares index also dipped by 0.36 percent or 12.93 points, settling at 3,535.77. The market’s downturn was attributed to concerns surrounding the peso’s depreciation against the US dollar, with the local currency breaching the P58-per-dollar threshold, its lowest level in nearly two years.
Mikhail Plopenio, Philstocks Financial’s research and engagement officer, noted, “The peso breached the P58-per-dollar mark which has been the lowest in nearly two years.” Tuesday saw the peso closing at 58.27 to $1, marking a 37 centavos decline from Monday’s 57.90 to $1, the lowest level since November 8, 2022.
Market analysts highlighted the absence of significant positive cues, contributing to investor apprehensions. Luis Limlingan from Regina Capital remarked, “Philippine shares weakened as investors watched the peso slide below the P58 mark toward the US dollar, while the US market went underway with trading.”
Despite the downturn, the net market value turnover stood strong at P5.45 billion, surpassing the year-to-date average of P4.99 billion. However, all sectors saw declines except for services, which recorded a modest 0.78 percent gain. Property took the largest hit, dropping by 1.28 percent, while financials and holding firms each experienced declines exceeding one percent. Market breadth remained negative, with decliners outnumbering advancers, 99 to 86, while 48 issues remained unchanged.