PSEi sinks to one-month low on peso weakness

THE MAIN INDEX dropped to the 7,200 level anew on Tuesday, hitting an over one-month low, due to the peso’s decline against the dollar, which has strengthened amid market bets on the results of the US presidential election.

The bellwether Philippine Stock Exchange index (PSEi) fell by 1.4% or 103.26 points to 7,239.98 on Tuesday, while the broader all shares index sank by 1.45% or 58.89 points to 3,977.31.

This was the PSEi’s lowest close in over a month or since it ended at 7,202.16 on Sept. 19.

“The local market declined this Tuesday. The bourse was weighed by the weakness of the local currency against the dollar and the rise in local treasury yields. Investors are also taking a cautious stance amid the uncertainties caused by the upcoming US election,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“Foreign investors were net sellers for the day, adding to the market’s decline,” he said. Net foreign selling surged to P933.59 million on Tuesday from P47.81 million on Monday.

The local unit closed at P58.275 per dollar on Tuesday, down by five centavos from its P58.225 finish on Monday, according to Bankers Association of the Philippines data.

The US election has entered its final stretch, with opinion polls still too close to call a winner, despite some betting sites and financial markets leaning toward a win for Republican Donald Trump over Democrat Kamala Harris, Reuters reported.

Recent robust US economic data, including evidence of a resilient job market, have seen bets pared back for easing this year by the US Federal Reserve, boosting the dollar.

The US currency has also been buoyed by rising market expectations for an election win for Mr. Trump, whose tariff, tax and immigration policies are seen as inflationary, thus negative for bonds and positive for the dollar.

The dollar slipped 0.23% to 152.92 yen, but that followed a rally to the highest since July 31 at 153.885 yen on Monday.

“Local equities snapped their two-day winning streak as traders locked in their gains ahead of the All Souls’ Day holiday and further assessed the latest corporate earnings reports,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

All sectoral indices closed lower on Tuesday. Property declined by 2.29% or 65.43 points to 2,791.84; financials slumped by 1.55% or 37.36 points to 2,370.96; services went down by 1.53% or 34.47 points to 2,211.82; mining and oil retreated by 0.98% or 85.76 points to 8,598.36; holding firms dropped by 0.93% or 57.63 points to 6,133.13; and industrials lost 0.74% or 74.06 points to end at 9,852.87.

Value turnover rose to P6.17 billion on Tuesday with 565.64 million issues traded from the P4.13 billion with 873.27 million shares that changed hands on Monday.

Decliners overwhelmed advancers, 147 versus 55, while 51 names were unchanged. — Revin Mikhael D. Ochave with Reuters