THE peso sustained its recovery against the US dollar for a second consecutive week, even as the stock market ended lower on Friday as investors locked in gains and positioned themselves ahead of the release of third-quarter economic growth data.
The local currency weakened by 8.5 centavos to close at P63.055:$1 from Thursday’s P62.97. Despite the slight pullback, it posted a weekly appreciation of 68.5 centavos, or 1.1 percent, against the greenback, reversing the previous week’s 0.2-percent depreciation.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., attributed the peso’s continued improvement largely to lower global crude oil prices, which have eased pressure on the local currency.
He also cited seasonal dollar conversions by overseas Filipino workers, exporters and business process outsourcing companies ahead of Christmas-related spending and 13th-month pay releases.
John Paolo Rivera, Philippine Institute for Development Studies senior fellow, said the peso’s recovery reflected improving market sentiment and easing external pressures, although he cautioned against treating its recent gains as a sustained reversal.
The currency’s direction would continue to depend on global dollar movements, oil prices, monetary policy expectations and investor confidence, Rivera said.
He added that a stronger peso could help ease imported inflation, particularly through fuel and production costs, although the benefits might take time to reach consumers.
PSEi retreats
At the stock market, the benchmark Philippine Stock Exchange index fell 16.19 points, or 0.28 percent, to 5,761.95, ending a two-session advance. The broader All Shares index likewise declined by 0.35 percent.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the local bourse tracked weakness across global markets, which weighed on investor sentiment and prompted profit-taking after two consecutive sessions of gains.
Market participants also remained cautious amid lingering macroeconomic uncertainties while awaiting fresh catalysts to sustain the market’s recent recovery, Limlingan said.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said investors took profits following the market’s two-day rally and remained cautious ahead of the third-quarter gross domestic product figures due next week, amid expectations of subdued economic growth.
All sectors declined except financials, which gained 1.24 percent.
DMCI Holdings Inc. led the main index gainers, advancing 3.26 percent, while Ayala Land Inc. was the biggest laggard, falling 2.44 percent.
Market breadth was negative, with 96 decliners against 69 advancers, while 70 stocks were unchanged. Net value turnover reached P5.52 billion, while foreign investors recorded net buying of P981.81 million.
