MANILA – The main equities gauge and the peso slipped Tuesday ahead of the US polls and some geo-political issues overseas.
The Philippine Stock Exchange index (PSE) shed 0.23 percent, or 13.82 points, to 5,923.23 points.
All Shares followed with a drop of 0.08 percent, or 2.68 points, to 3,569.14 points.
Half of the sectoral counters followed the main index but the other half gained.
Those that finished the day in the negative territory were led by Mining and Oil, which fell 2.98 percent.
It was trailed by Holding Firms, which declined by 0.78 percent; and Financials, 0.15 percent.
Services rose by 0.50 percent; Property by 0.08 percent; and Industrial by 0.002 percent.
Volume reached 3.83 billion shares amounting to PHP5 billion.
Gainers led losers at 98 to 95, while 59 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation head of sales, attributed the negative sentiments in the local bourse partly to anxieties ahead of the US Presidential polls next month, the simmering tension between China and Australia, and the delay in the discussions for another stimulus package in the US.
Citing reports, Limlingan said China halted coal purchases from Australia, which is expected to hurt steel makers more than the requirements for electricity generation.
Meanwhile, the peso inched lower against the US dollar at 48.535 from 48.47 Monday.
It opened the day at 48.57, weaker than its 48.35 start in the previous session.
It traded between 48.61 and 48.5, resulting in an average of 48.556.
Volume totaled USD821.6 million, higher than the USD600.35 million.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said the peso finished Tuesday at its weakest in more than two weeks, but this level is still among the strongest since November 4, 2016, when it finished the trade at 48.48.
He attributed this partly to investors’ wait-and-see stance on the Philippine government’s proposed PHP4.5-trillion proposed budget for next year given the developments in the House of Representatives.
Lawmakers have until Friday to approve the proposed 2021 national budget.
Other factors in Tuesday’s foreign currency trading are the increase in local coronavirus disease 2019 (Covid-19) infections, the delay in the proposed US stimulus program, Johnson & Johnson’s decision to halt clinical studies on a possible Covid-19 vaccine after a trial participant fell ill, and the United Kingdom’s decision on Brexit.
Ricafort forecasts the peso to trade between 48.45 and 45.48 Wednesday. (PNA)
