THE peso sank to a new all-time low on Friday and the stock market fell for a second straight day as fears about the impact of war in the Middle East mounted.
The currency weakened by 35 centavos to P59.735 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) shed 54.64 points, or 0.89 percent, to 6,058.94
The broader All Shares also fell, by 23,29 points or 0.68 percent, to 3.382.11.
The peso opened at P59.55:$1 — lower than the previous record low of P59.5 seen on Monday — and traded from P59.41 to P59.75. Volume rose to P1.09 billion from P708 million the previous day.
A trader said the new all-time low was mostly driven by strong dollar demand and rising oil prices amid war in the Middle East.
“In the near term, the peso may trade with volatility, its movements driven mainly by oil prices, global dollar strength, and geopolitical developments,” the trader added.
Philstocks Financial Inc. research manager Japhet Tantiangco said the PSEi extended its decline as Iran’s new supreme leader, Mojtaba Khamenei, said the Strait of Hormuz — a vital oil trade route — would remain closed.
Luis Limlingan, Regina Capital Development Corp. head of sales, said the Philippine market moved in line with the broader downturn in global equities as investors reacted to escalating geopolitical tensions.
“The threat of continued increases in oil prices heightened concerns over inflation and possible policy tightening,” he said, adding that the weakening peso and persistent geopolitical uncertainty also made investors more cautious.
Net value turnover stood at P4.86 billion, reflecting subdued trading activity. Foreign investors were heavy net sellers, with net outflows reaching P3.66 billion.
Sectoral performance was mostly negative, with only industrials posting a modest gain of 0.16 percent while the rest ended in the red.
Mining and oil sector posted the steepest drop of 1.81 percent.
The broader market saw 108 decliners against 68 gainers, while 79 issues were unchanged.