THE peso fell for a second day and the stock market reversed course on Thursday as oil prices again breached $100 per barrel as Iran attacked ships in the Gulf.
The currency weakened by 21 and a half centavos to P59.385:$1 while the benchmark Philippine Stock Market index (PSEi) shed 44.75 points, or 0.73 percent, to 6,113.58.
Thursday’s drops were not as worse as those seen on Monday, when the peso hit a new record low of P59.50 to the dollar and the PSEi plunged 4.97 percent to 6,006.22.
Markets had calmed after US President Donald Trump claimed that the war on Iran was essentially over and the International Energy Agency said that its members were ready to release emergency oil stockpiles.
Investors were rattled anew, however, after Iran was reported to have attacked six vessels, including two fuel tankers, in Gulf waters.
The currency opened at P59.32 and traded from P59.223 and P59.65. Volume reached P1.919 billion, down from the previous P2.057 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened after the global crude oil prices went up, which could push inflation higher.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said the PSEi pulled back after Iran warned that crude oil prices could surge to as much as $200 per barrel.
The peso’s drop was also a factor, he added.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the market entered selling mode after global oil prices surged.
“The spike in oil heightened inflation worries and dampened investors’ risk appetite, raising the possibility of a rate hike by the Bangko Sentral ng Pilipinas,” he said.
All but one of the six sectoral indices fell, with services down the most by 3.28 percent. Holding firms were the only gainers, up 1.33 percent.
The broader market saw 125 decliners against 60 gainers, while 65 issues were unchanged.
Net value turnover reached P7.14 billion, higher than the year-to-date average of P6.63 billion, while foreign investors remained net sellers with outflows of P453.03 million.
