Peso, stocks decline on profit-taking

Peso, stocks decline on profit-taking

MANILA – Both the peso and the Philippine Stock Exchange index (PSEi) finished the week with losses due to profit-taking ahead of the long weekend.

Risk-off sentiments reigned on the local bourse during the day, with the main index down by 0.61 percent, or 36.72 points, to 6,005.40 points.

All Shares slipped by 0.51 percent, or 18.30 points, to 3,573.06 points.

Mining and Oil led the sectors with a contraction of 2.37 percent and was trailed by the Financials, 1.32 percent; Property, 0.71 percent; Services, 0.68 percent; Industrial, 0.35 percent; and Holding Firms, 0.23 percent.

Volume reached 1.5 billion shares amounting to PHP4.05 billion.

Losers led gainers at 131 to 64, while 46 shares were unchanged.

“PSEI shares finished lower as the FOMC (Federal Open Market Committee) minutes cut their economic growth forecast for the remainder of 2020 and stressed the need for more fiscal aid in the wake of the coronavirus pandemic,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.

Minutes of the FOMC meeting from July 28 to 29 showed that staff expects the economic rate in the second half of the year and the pace of declines in unemployment rate to be “somewhat less robust than in the previous forecast” because of the continued rise of coronavirus disease (Covid-19) infections.

Limlingan said the US ended three agreements with Hong Kong that involves extraditions and tax exemptions.

“The two countries also plan to reschedule postponed trade deal talks, though no date has been set,” he added.

There will be no trading on Friday due to the Ninoy Aquino holiday.

Meanwhile, the local currency finished the day at 48.68 from 48.575 Wednesday.

It opened the day flat at 48.61 and traded between 48.71 and 48.61.

Average level for the day stood at 48.654 from 48.561 a day ago.

Volume declined to USD788.66 million from the previous session’s USD794.5 million. (PNA)

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