Weak peso weighs on local shares

MANILA – Local shares closed weak on Friday amid net foreign selling and the local currency’s depreciation against the dollar, which breached P56 during the trading.

The Philippine Stock Exchange index (PSEi) closed the week lower by 7.33 points at 6,503.54, while All Shares slightly gained 0.57 points at 3,451.78.

Philstocks Financial Inc. assistant research manager Claire Alviar said the local bourse’s shedding is mainly due to net foreign selling amounting to P802.44 million.

“The sentiment was further dampened by the depreciation of the peso. Meanwhile, many investors were still waiting for a fresh catalyst to move the market,” Alviar added.

Sectoral indices were mixed with advancers led by Industrial, increasing by 84.12 points, breaching the 9,000 mark. Other gainers include Mining and Oil, which increased by 62.17 points, and Property, up by 27.46 points.

Holding Firms led the losers, declining by 27.05 points, followed by Services and Financials, whose shares decreased by 17.85 points and 11.06 points.

Despite the decline in the overall shares, there were more gainers than losers among index members at 106 to 65, leaving 59 firms unchanged.

Meanwhile, the Philippine peso closed at 55.97 to a US dollar from a 55.84-finish on Thursday.

The peso opened the day at 55.85 from the last day’s kick-off at 55.87 to a dollar.

During Friday’s trading, the currency pair traded between a high of 56.02 and a low of 55.77 to the greenback. The weighted average for the currency pair was at 55.87 to a dollar. /