The local main equities index fell on Tuesday partly on the outlook change by Fitch Rating on the country’s credit rating but the peso managed to strengthen against the US dollar after climbing to 49-level mid-trade.
The Philippine Stock Exchange index (PSEi) lost by 1.72 percent, or 118.74 points, to 6,795.13 points.
This was mirrored by all the other counters, with the All Shares down by 1.27 percent, or 54.26 points, to 4,215.76 points.
The Property index registered the biggest drop at 2.26 percent and was followed by the Holding Firms, 2.01 percent; Financials, 1.56 percent; Mining and Oil, 1.28 percent; Industrial, 0.92 percent; and Services, 0.04 percent.
Volume totaled 1.89 billion shares amounting to PHP5.78 billion.
Losers led gainers at 125 to 66, while 51 shares were unchanged.
Luis Limlingan, Regina Capital Development Corporation head of sales, said Fitch Ratings’ move to change the outlook of its investment grade rating on the country at BBB from stable to negative due to the impact of the pandemic, affected investors’ sentiments.
He said the downward revision of the outlook “reflects increasing risks to the credit profile from the impact of the pandemic and its aftermath on policy-making as well as on economic and fiscal out-turns.”
He added investors’ attention “has shifted back into the US, as earnings season begins in earnest later today, and investors will be watching to see if companies’ results justify the high valuations in the market.”
Meanwhile, the peso reversed its path after gaining against the greenback following several days of depreciation.
It finished the trade at PHP50 compared to a US dollar, better than its PHP50.12 close a day ago.
It opened the day at PHP50.3 and traded between PHP50.3 and PHP49.95.
Average level for the day stood at PHP50.138.
Volume totaled to USD801.5 million, higher than the USD664.2 million a day ago.
Source: Philippines News Agency
