PSEi falls to 6,265.72, peso weakens to P61.51

Philippine financial markets opened the week on a negative note, as share prices declined on Monday, while the local currency depreciated to its weakest level in over a month.

The Philippine Stock Exchange index (PSEi) shed 20.98 points or 0.33% to 6,265.72 at the closing bell, while the broader All Shares index declined lost 10.11 points or 0.30% to 3,383.23.

“The local bourse ended lower as investors continued to consolidate positions, with the PSEi trading below the key 6,300 resistance level,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile message.

“Market participants remained cautious as they awaited fresh catalysts to determine the market’s next direction. Sustained buying interest and a breakout above resistance may be needed to support further upside momentum,” he added.

Nearly all sectoral indices closed negatively—financials down 0.63%, industrial down 1.02%, holding firms and property both down 0.29%, and mining and oil down 2.27%. Services was the lone gainer, up 0.40%.

More than 1.148 billion shares, valued at P16.815 billion, changed hands. Decliners led advancers, 101 to 77, while 75 issues were unchanged.

The Philippine peso, meanwhile, depreciated by 5.1 centavos to close at P61.599:$1 from last Friday’s finish of P61.515:$1. This is the weakest showing since June 8 when it closed at P61.69:$1.

“The US dollar/peso exchange rate was slightly higher… after the year-on-year decline in the local net foreign direct investments (FD) data,” Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort said in a separate mobile message.

Net inflows of FDIs fell to $250 million in April, the lowest in nearly 10 years since June 2016’s $244 million, data released by the Bangko Sentral ng Pilipinas (BSP) on Friday showed.

Ricafort said Monday’s depreciation was also driven by the escalating conflict in the Middle East, as US and Iranian forces exchanged missile and drone assaults across the Gulf on Sunday, prompting the closure of the Strait of Hormuz. — BM, GMA News