THE peso weakened against the greenback on Wednesday following the faster-than-expected US inflation data, while local stocks retreated as investors continued to assess corporate earnings and near-term market prospects.
The peso weakened by 34 centavos to P63.25 from Tuesday’s P62.91. It opened at P63.15 and traded between P63.12 and P63.295. Trading volume declined to $1.42 billion from $1.83 billion in the previous trading session.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened after stronger-than-expected US inflation data, which raised expectations of further interest rate hikes by the United States Federal Reserve (Fed).
Ricafort said that markets are pricing in a 112-percent chance of a 25-basis-point rate hike at the Fed’s Dec. 9 meeting and three additional quarter-point increases by June 2027.
“Hawkish statements by some Fed officials lately could lead to higher US dollar vs. major global currencies,” Ricafort said.
Meanwhile, the benchmark Philippine Stock Exchange index (PSEi) fell below the 5,700 level on Wednesday, shedding 0.40 percent, or 22.81 points, to close at 5,693.20.
Luis Limlingan, head of sales at Regina Capital Development Corp., said investors remained cautious as they digested earnings reports from major index companies and evaluated their performance against expectations.
“Trading remained cautious as market participants assessed corporate performance against expectations and evaluated near-term earnings prospects,” Limlingan said, adding that investors remained selective while awaiting further disclosures for clearer market direction.
Market breadth was slightly negative, with 85 decliners against 81 advancers, while 65 stocks were unchanged. Value turnover reached P5.48 billion, excluding extraordinary block sales, while foreign investors recorded net buying of P55 million, AB Capital Securities Inc. data showed.
Among sectors, industrials gained 1.47 percent, followed by properties, which rose 0.75 percent. Financials slipped 0.10 percent, holding firms declined 0.33 percent, mining and oil shed 1.52 percent, and services dropped 1.98 percent.
Jollibee Foods Corp. led index gainers, climbing 5.08 percent, followed by Century Pacific Food Inc., which rose 3.16 percent.
On the losing side, San Miguel Corp. fell 3.94 percent, while Citystate Savings Bank declined 3.90 percent. International Container Terminal Services Inc. was the most actively traded stock, with P1.32 billion in transactions, but fell 2.50 percent.
