MANILA — Investor caution continued to weigh on Philippine financial markets on Wednesday, pulling both the stock market and the peso lower as traders remained wary of ongoing currency weakness.
The Philippine Stock Exchange index (PSEi) retreated by 1.04 percent to close at 6,267.85, while the broader All Shares Index dropped 0.53 percent to finish at 3,421.35.
Losses were led by the Services sector, which fell 3.01 percent. Holding Firms and Financials also ended in negative territory, declining 0.28 percent and 0.08 percent, respectively.
Meanwhile, gains were recorded in Mining and Oil, up 1.30 percent, followed by Industrial with a 0.40-percent increase and Property with a 0.24-percent rise.
Trading remained relatively light as total turnover reached 711.22 million shares worth PHP6.49 billion.
Market breadth stayed negative, with 105 stocks declining, 89 advancing, and 48 closing unchanged.
According to Luis Limlingan of Regina Capital Development Corp., investors continued taking profits as the peso’s depreciation fueled cautious market sentiment.
He said the benchmark index slipped below the 6,300 mark due to sustained selling pressure, adding that traders are likely to remain focused on the direction of the peso and overall market conditions.
The peso also weakened slightly, ending the day at 61.75 per US dollar from the previous close of 61.74.
It opened trading at 61.73 and fluctuated between 61.73 and 61.75 before settling lower. Average exchange rate for the session stood at 61.74.
Trading in the foreign exchange market increased substantially, with volume climbing to nearly USD1.27 billion from USD752.5 million recorded a day earlier.
