THE peso and the stock market slipped on Monday as failed peace talks between the United States and Iran weighed on investor sentiment.
The currency returned to the P60:$1 level, weakening by 16 and a half centavos to P60.135, while the benchmark Philippine Stock Exchange index (PSEi) shed 44.16 points, or 0.71 percent, at the close to end the day at 6,054.05.
Last-minute buying limited the bourse’s losses following a fall below the 6,000 mark in early trading.
The peso opened at P60.25 to the dollar and traded between P60.13 and P60.5. Volume reached P1.893 billion, up from P1.494 billion in the previous session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the currency weakened due to hedging tied to crude oil and fuel imports as the country builds up supplies following a drop in global oil prices ahead of the US-Iran talks.
The subsequent rise in crude prices and a rise in the dollar after negotiations over the weekend ended without a deal were also contributing factors, he added.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said the PSEi tracked global weakness as concerns over potential supply disruptions and rising oil prices dampened risk appetite.
He noted that net value turnover reached P6.57 billion, while foreign investors posted net outflows of P216.89 million.
Luis Limlingan, Regina Capital Development Corp. head of sales, likewise said Philippine equities ended in the red as heightened geopolitical risks in the Middle East drove caution in the markets and as crude oil climbed above $100 per barrel.
Sectoral performance for the day was broadly negative, with only services managing to post gains, up 1.02 percent, while financials fell the most by 2.35 percent.
Market breadth was also weak, with 121 decliners against 82 advancers while 69 issues were unchanged.
