‘Weak’ peso makes investors cautious

MANILA – Currency concerns were one of the main issues of

io the equity market this week. As the [eso weakened against the dollar, local investors became cautious, despite strong capital inflows from foreign investors.

“This week we have seen the peso weaken and broke the P50 level,” reports local technical analyst Hernan Segovia. “From here, traders take cue and have taken their profit, and today (Friday) we have seen the index going back and forth at the 7,800 level.”

Aside from the weakening peso, investors also continue to be concerned about the events in Mindanao, and such concerns has led many investors to buy and sell stocks on the short term.

“With regards to the local front news, I think the market is just absorbing all the local news, like the Marawi event and the like,” Segovia said.

“I think that if the AFP were to say that we have liberated Marawi then I guess it will have a positive effect on the market, but the market is taking cue from the weak peso. So even though, the market is still range bound, Traders are opting to play a little bit – just buying and selling a little bit.”