MANILA—The Philippine Stock Exchange index (PSEi) halted a four-day rally, closing lower on Wednesday, while the Philippine peso strengthened against the US dollar, reflecting mixed economic signals.
According to the Philippines News Agency, the PSEi fell by 0.57 percent to close at 6,944.88, with the broader All Shares index also seeing a decline of 0.53 percent. Japhet Tantiangco, research manager at Philstocks Financial, noted that the market faced selling pressures as investors adopted a cautious approach. “Investors took a cautious stance while waiting for the US’ August inflation data which can provide clues on the Federal Reserve’s policy outlook,” Tantiangco explained. He also mentioned that investors were digesting recent economic reports including a widened trade deficit and a drop in foreign direct investment inflows for the Philippines.
Sector-wise, only the services sector managed to avoid losses, ending the day flat. In contrast, the properties sector suffered the most significant drop, declining by 2.49 percent. Overall, losers outnumbered gainers with 131 stocks declining and 66 advancing.
On the currency front, the peso showed notable resilience, closing stronger at 55.975 against the US dollar compared to Tuesday’s finish of 56.385. The peso opened at 56.35 and fluctuated between 55.935 and 56.35 throughout the day, with a weighted average of 56.132. The volume of trade increased to USD 1.71 billion from USD 1.57 billion the previous day.