Peso, stocks weaken on US recession fears

MANILA — Fears for another recession of the US economy made investors risk-averse, resulting in the weakening of the peso and the negative close of the Philippine Stock Exchange index (PSEI) on Thursday.

The local currency ended the day at 52.498 from the 52.28 close on Wednesday.

In its market report, BPI Research traced the weakening to reports that the German economy posted zero growth, as measured by gross domestic product (GDP), in the second quarter this year.

Other factors are the 17-year low industrial output of the Chinese economy last July, which grew 4.8 percent year-on-year, and the weaker-than-expected retail sales growth of 7.6 percent last July.

holders.”

Sugar producers said this will require the updating of industry data with respect to actual area under cultivation and the corresponding crop estimates of the different sugarcane-growing districts throughout the country.

Also, it needs an accurate and fair determination of demand by industrial users, food exporters and domestic consumers.

Montinola further said Amores’ group must not be the basis for such call as they “require a miniscule amount for their industry.”

Also, Confed sees the need for industry stakeholders to adopt strategic measures to “adjust to fast changing conditions” through the proper utilization of the Sugar Industry Development Act (Sida) fund.

“In this matter, the Sugar Regulatory Administration must play a key leadership role in addressing this issue,” it reiterated./epn