MANILA – The Philippine Stock Exchange index (PSEi) and the Philippine peso both weakened on Monday (10 June 2024), impacted by stronger-than-expected employment data from the United States. This positive U.S. economic report led to increased U.S. Treasury yields and decreased the likelihood of Federal Reserve interest rate cuts later this year.
The PSEi dropped by 0.92%, closing at 6,458.64, while the broader All Shares index declined by 0.71% to 3,467.24.
All sectors finished in negative territory, with the Mining and Oil index suffering the largest decline of 1.92%. Other notable losses included:
Financials: down 1.62%
Services: down 1.18%
Property: down 1.07%
Industrial: down 0.45%
Holding Firms: down 0.10%
The trading day saw more losers than gainers, with 109 stocks declining and 58 advancing, while 66 remained unchanged.
Influence of a Weaker Peso
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort noted that the weakening of the Philippine peso also played a role in the day’s stock market performance.
The peso closed at 58.79 to the U.S. dollar, down from 58.52 at the end of last week, a decrease of 0.27. This exchange rate is the lowest the peso has been in the last 19 months, dating back to November 3, 2022.
Ricafort added, “Looking ahead, the U.S. dollar-Philippine peso exchange rate will likely continue to be influenced by interventions, as has been the trend over the past 1.5 years.”
The exchange rate fluctuated between 58.67 and 58.80 during the day, with an average rate of 58.77 against the U.S. dollar.
Trading volume also saw a significant drop, falling to USD 604.85 million from USD 1.23 billion last Friday.
(el Amigo/Source:PNA)
