MANILA – Trade concerns triggered risk aversion in the local bourse causing the Philippine Stock Exchange index (PSEi) to nosedive and bring the peso down to the 52-level against the greenback.
After declining to the 7,700-territory on Monday, the main index dropped further by 1.56 percent, or 123.27 points, to 7,766.75.
All Shares was slashed off 1.19 percent, or 57.20 points, to 4,763.91.
Mining and Oil posted the highest contraction of 2.02 percent and was followed by Financials, 1.72 percent; Holding Firms, 1.70 percent; Industrial, 1.54 percent; Services, 1.40 percent; and Property, 1.18 percent.
Volume reached 1.4 billion shares amounting to PHP9.7 billion.
Losers led gainers at 165 to 47 while 37 shares were unchanged.
Regina Capital Managing Director Luis Limlingan said the same trade concerns weighed down US Treasury yields but cited that prices of gold have risen.
“(This is an) ominous sign for a flight towards safe haven assets,” he said.
“Stocks suffered one of their biggest declines of 2019 as China allowed its currency to fall to a more-than-10-year low versus the dollar,” he added.
Relatively, the peso ended the day at 51.955 to a US dollar from its 51.79 close on Monday, which a trader pointed to the developments of the renminbi.
It started the day on a weakened level of 52.1 to a greenback from its 51.6 opening in the previous day. It traded between 52.1 and 51.88, resulting to an average of 52.003.
Volume reached USD1.32 billion, lower than the previous day’s USD1.39 billion. The currency pair is seen to trade between 51.90 and 52.10 Wednesday. (PNA)
