Stocks, peso weaken on stimulus package concerns in US

Stocks, peso weaken on stimulus package concerns in US

MANILA – The Philippine Stock Exchange index (PSEi) slipped for the third consecutive day Wednesday while the peso also ended the day weaker against the greenback after US President Donald Trump doused hopes of another stimulus package soon.

The main stocks gauge shed 0.72 percent, or 42.76 points, to 5,867.88 points.

All Shares followed with a drop of 0.45 percent, or 15.83 points, to 3,527.90 points.

Most of the sectoral counters also closed into the negative territory, led by Services, which declined by 1.99 percent.

Property went down by 0.75 percent, Holding Firms, 0.53 percent; and Industrial by 0.25 percent.

Mining and Oil index rose by 3.87 percent and Financials by 0.37 percent.

Volume totaled 1.81 billion shares amounting to PHP7.11 billion.

Gainers led losers at 101 to 92, while 48 shares were unchanged.

“The PSEi continued to fall after President Donald Trump said he would end negotiations on a new fiscal stimulus package, sending jitters into investors who hoped Washington lawmakers would strike a deal soon,” Luis Limlingan, Regina Capital Development Corporation head of sales, said.

In a Tweet, Trump said a major stimulus bill will be passed “immediately after I win”, referring to the national polls in November. 

Federal Reserve officials have repeatedly called for another stimulus program to help lift the US economy from the impact of the pandemic.

At home, the risk-off sentiment in the local bourse affected currency trading, resulting in the depreciation of the peso, which closed the day’s trade at 48.39 from 48.38  in the previous session.

Its weakness showed early on after the opening of the trade at 48.48 from 48.35 a day ago.

It traded between 48.5 and 48.38, resulting in an average of 48.444.

The volume of trade declined to USD584.4 million from USD658.2 million Tuesday. (PNA)

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