Peso, PSEi drop with easing in doubt

THE peso weakened on Thursday and the stock market also fell with sentiment said to have taken a hit from the Federal Reserve’s latest rate cut possibly being the last for the year.

The currency closed at P58.85 to the dollar, weaker by 16 centavos, while the benchmark Philippine Stock Exchange index (PSEi) shed 34.09 points, or 0.57 percent, to 5,929.68.

The broader All Shares also fell, by 11.93 points or 0.33 percent, to 3,593.28.

The peso, which hit a record low of P59.13:$1 on Tuesday but recovered a day later, opened Thursday at P58.73 and ranged from P58.58 to P58.98 against the greenback. Volume reached P2.225 billion, higher than the P2.012 billion in the previous session.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso weakened after Fed Chairman Jerome Powell signaled that a 25-bps rate cut in December 2025 was not guaranteed, boosting the dollar against major global currencies.

Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said “The local market gave in to selling pressures brought by lingering concerns over the local economy’s outlook amid the corruption issues.”

“Also affecting the market were the tempered hopes of another Fed rate cut by December,” he added.

“Finally, investors took a cautious stance ahead of the long weekend.”

Trading remained tepid with net value turnover at P4.62 billion, below the year-to-date average of P5.85 billion.

“Foreigners were net sellers with net outflows at P354.32 million,” Tantiangco said.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said “The Philippine market slipped lower as selling pressure persisted throughout the session.”

“Traders remained cautious as they are waiting for the release of GDP (gross domestic product) and inflation data next week,” he added.

“Moreover, corporate earnings are also being closely monitored by investors, as these could determine the market’s next direction.”

All but one of six sector indices closed in the red with financials down the most by 1 percent. Mining and oil was the sole gainer, up 0.99 percent.

Decliners edged out gainers on a company basis, 95 to 82, while 64 were unchanged.