The local stock market dropped further as the peso weakened prior to expected rate cuts in the US and by the Bangko Sentral ng Pilipinas.
The main index lost 32.63 points or 0.50 percent to close at 6,469.08 as Banks continue to lead the retreat while Industrials and Services bounced. Volume was lower at 1.39 billion shares worth P5.96 billion as losers outnumbered gainers 104 to 83 with 61 unchanged.
“Philippine shares continued to drop ahead of the FOMC meeting and following the sentiment of regional markets,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that “investors attempt to clean positions before 2025, while others are monitoring the FTSE and upcoming BSP interest rate decision.”
Philstocks Financial Research Manager Japhet Tantiangco said “the local market extended its decline to a sixth straight day as investors stayed on the cautious side while waiting for the outcomes, including the policy outlooks, of the meetings of the Federal Reserve and the Bangko Sentral ng Pilipinas.”
He noted that “the Peso’s weakness, now testing the 59.00 per US Dollar level, also weighed on the day’s trading. Foreigners were still net sellers contributing to the market’s decline. Net foreign selling for the day was at P487.26 million.”