Peso starts week sideways vs. USD, stocks index slides

The peso ended sideways against the US dollar on Tuesday while the main equities index slipped as concerns over anti-China issues rose.

 

The Philippine Stock Exchange index (PSEi) shed 1.44 percent, or 84.94 points, to 5,799.24 points.

 

All Shares contracted by 0.94 percent, or 33.32 points, to 3,501.26 points.

 

Half of the sectoral gauges followed the main index – Holding Firms, which fell 2.14 percent; Services, 1.98 percent; and Property, 1.76 percent.

 

Mining and Oil rose by 3.57 percent, Industrial by 0.74 percent, and Financials by 0.66 percent.

 

Volume totaled 1.87 billion shares amounting to PHP6.86 billion.

 

Losers led gainers at 99 to 85, while 57 shares were unchanged.

 

“The Philippine and regional market(s) weakened with anti-China tension escalating,” said Luis Limlingan, Regina Capital Development Corp. head of shares.

 

He cited reports saying that China has detained Australian Cheng Lei, an anchor who works for the Chinese government-owned television network CGTN, despite the lack of charges for any crime.

 

This was after Australia prohibited Huawei and rejected China’s maritime claims.

 

The Australian government has also disclosed a legislative measure that would let it cancel deals with China, with the latter hitting back by saying that an investigation would be made into Australian wine.

 

The US-China tension increased after a US government official said they would ban other Chinese companies similar to their decision on TikTok.

 

In turn, China started an anti-dumping investigation on some glycol ethers from the US.

 

Similarly, China has asked India to pull out its troops from the border to prevent the further increase of tensions between the parties.

 

Meanwhile, the local currency finished the week’s first trading day at 48.48 to the greenback, little changed from its 48.485 close last Friday.

 

There was no trading on Monday due to the commemoration of National Heroes’ Day.

 

It opened the trade at 48.48, almost unmoved from the previous session’s 48.60, trading between 48.545 and 48.44 for an average of 48.476.

 

Volume totaled USD819.1 million, lower than the USD1.19 billion at the end of last week.

 

Source: Philippines News Agency

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