Stocks drop due to peso weakness

The local stock market declined after sentiment was dampened by the fall of the peso to the P58 to a US dollar level.

The main index lost 49.12 points or 0.74 percent to close at 6,633.66 as the Property sector led the retreat while the Services counter bucked the trend and advanced. Volume rose to 2.95 billion shares worth P9.8 billion due to a block sale while losers beat gainers 99 to 86 with 48 unchanged.

“Philippine shares weakened as investors watched the peso slide below the 58.00 mark towards the USD, while the US market went underway with trading,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

He added that “the local market became cautious as many took into account that the BSP may cut interest rates as soon as August.“

Philstocks Financial Research and Engagement Officer Mikhail Plopenio said, “this Tuesday, the local market dropped as investors worry over the weakness of the local currency against the US dollar. The Philippine peso breached the P58-per-dollar mark which has been the lowest in nearly two years.”

“Also, the lack of strong positive leads weighed on the market,” he noted.