Stocks fall on weak peso

Manila, Philippines – Philippine shares began the week on a weak note, dragged by a depreciating peso.

The main index shed 0.85 percent, or 51.78 points, to settle at 6,057.43. Four of the six counters were in the red, with services and industrial stocks gaining less than just a percentage point. Banking shares fell the most.

“The local market declined on its first day of the week, weighed by the weakness of the Philippine Peso against the US Dollar,” Japhet Tantiangco, research manager at PhilStocks Financial, Inc., said in a research note to investors.

The peso further drifted away past the P57-to-the-dollar level to depreciate to P57.181 against the dollar, or eight centavos weaker, according to spot currency market data on Monday.

“The lack of a local positive catalyst also caused investors to exit the market,” Mr. Tantiangco added.

Foreign investors were net sellers for the day with net outflows amounting to P473.25 million adding to the market’s drop. Net value turnover for the day was P6.00 billion.

Converge ICT Solutions, Inc. [PSE: CNVRG] was the top index gainer, up by 6.43 percent to P11.92. DigiPlus Interactive Corporation [PSE: PLUS] was the main index laggard, down 7.04 percent to P18.50.

Decliners edged advancers 117 to 84.

“However, attractive prices suggest that selective accumulation may benefit patient investors, potentially forming a base ahead of confidence-boosting catalysts,” Regina Capital managing director Luis Limlingan said in a note to investors.

On Wall Street, momentum softened slightly on Friday as investors took a breather. Still, the tech-heavy Nasdaq Composite managed to close at a new record high.

“While the S&P 500 and Dow edged slightly lower, overall sentiment remained bullish as traders priced in a widely anticipated Federal Reserve rate cut in the coming week,” Mr. Limlingan said.