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Index of PH stocks, falling peso

Due to poor investor interest, all counters on the local stock exchange closed in the red on Thursday as the peso fell versus the US dollar.

To reach 6,560.22 points, the Philippine Stock Exchange index (PSEi) lost 0.84 percent or 55.73 points.

The performance of All Shares was then negative, falling 0.81 percent, or 28.57 points, to 3,496.79 points.

Holding Firms experienced the largest decline of the sectoral indices, down 1.12 percent.

Services and Mining and Oil were in second place, both down 1.07 percent, followed by Financials (0.99 percent), Property (0.71 percent), and Industrial (0.30 percent).

715.82 million shares, or PHP3.95 billion, were traded.

At 113 to 53, decliners outnumbered gainers, while 59 shares remained unchanged.

In response to concerns over the US debt ceiling negotiations, local shares were sold off, according to Luis Limlingan, head of sales at Regina Capital Development Corporation (RCDC).

He pointed out that this problem is why Fitch Ratings has put the outlook on the US’s “AAA” credit rating on “ratings watch negative,” which, according to Limlingan, was caused by the risk of a US government defaulting on some of its debts. In contrast, the debt ceiling negotiations are still ongoing.

According to him, the probability of additional OPEC+ production cutbacks increased “after a large unexpected drawdown in US crude inventories and a warning from the Saudi Energy Minister (Prince Abdulaziz bin Salman),” which led to an increase in oil prices on the world market.

The peso declined from its previous close of PHP55.77 to PHP56.065 at the end of the day’s trading, mirroring the PSEi’s negative closing.

It started trading at PHP55.79 and fluctuated between PHP56.11 and PHP55.74 during the day. The day’s average level was PHP55.916.

Volume climbed from USD890.3 million a day earlier to USD1.64 billion.

According to Michael Ricafort, chief economist at Rizal Commercial Banking Corporation (RCBC), the peso retreated following the warning from Saudi Arabia’s energy minister, the strengthening of the US currency despite the debt ceiling negotiations, and the potential reduction in the reserve requirement for domestic banks.

He expects the peso to fluctuate between PHP55.95 and PHP56.15 on Friday about the US dollar.

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