Stocks fall on profit taking, peso weakest in 2.5 years

Share prices ended lower on Thursday on profit taking. The peso closed flat.

The Philippine Stock Exchange index lost 67.55 points to 6,660.05, down 1%.

The broader all-stock index fell 22.28 points to 3,567.78, down 0.62%.

The losers edged the winners 105-79 with 36 shares unchanged. Trade turnover reached P8.01 billion.

The peso closed at 52.45, like Wednesday.

The currency opened at 52.41 and hit a high of 52.30 and a low of 52.47. Trade revenue reached $1.12 billion.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the peso’s close, while unchanged, is among its weakest 2.5 years or so since August 2019. It was also partly supported by the overnight downward correction in global oil prices and the latest US Treasury cuts. yields, with the benchmark 10-year near three-week lows at 2.86%.

Regional currencies were also under pressure, although the US dollar eased as risk sentiment remained fragile after US Federal Reserve Chairman Jerome Powell stepped up hawkish rhetoric on Wednesday saying that the bank would push interest rates as high as necessary to stem inflation, Reuters reported.

Japhet Tantiangco, an analyst at Philstocks Financial Inc., said investors were pricing in gains on the market’s three-day rally since Monday.

Profit-taking was supported by negative fallout from Wall Street’s overnight tumble amid inflation and US interest rate concerns. Investors also traded cautiously pending the decision on the key rate of Bangko Sentral ng Pilipinas,” he said.

Foreign funds were net sellers worth P315.02 million.

SM Prime Holdings Inc., the most actively traded, fell P0.45 to P36.25. World Nissin Corp. increased from P0.76 to P15.70. BDO Unibank Inc. rose from P4.80 to P131.40. International Container Terminal Services Inc. fell 6.40 PPP to 211.40 PPP. SM Investments Corp. decreased from P31 to P839. Ayala Land Inc. fell from P0.85 to P27.95. Globe Telecom Inc. rose 40P to 2,498P. Ayala Corp. was up from P2 to P680. PLDT Inc. was down from P20 to P1,951.

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